Financial Solutions Alert
Writers: Richard P. Eckman, Stephen G. Harvey and Eric J. Goldberg
The Pennsylvania Supreme Court has managed to make it more challenging for Web payday loan providers to do company with Pennsylvania borrowers. The court recently ruled that Pennsylvania’s consumer banking regulations use to Web payday lenders even though those loan providers don’t have any real existence in their state. This ruling calls for all Web payday loan providers – also the ones that would not have any workplaces or workers in Pennsylvania – to be certified with Pennsylvania’s Department of Banking to produce loans that are payday Pennsylvania.
On October 19, 2010, the court ruled in Cash America Net of Nevada, LLC v. Pennsylvania, No. 68 MAP 2009, that Web payday lenders must certanly be certified by Pennsylvania’s Department of Banking to charge interest at significantly more than 6 % on loans under $25,000 in Pennsylvania, and such loans must conform to Pennsylvania’s customer Discount business Act (CDCA). (meer…)