Pennsylvania Payday Loan Laws and Regulations

Find out if short-term Payday Loans are legal in Pennsylvania and what amounts, interest rates and repayment terms are set by the state's Legislation.

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pennsylvania payday loans Rates and Terms

Legal Status

Legal Status

The status of a loan type according to the Federal laws and regulations. What concerns Payday Loans some states consider them legal, some – illegal and some restrict them in terms of amounts and interest rates.

Available (with some restrictions)
Maximum APR

Maximum APR

The maximum percentage allowed that actually represents annual cost of your loan. The APR is based on several things, including the amount you borrow, the interest rate and costs you’re being charged, and the length of your loan.

6.00%
Legal Payday Loans Online for Pennsylvania residents 

Though you must have heard that traditional Payday Loans are restricted in Pennsylvania, you may find other options to get instant cash advance permitted by Pennsylvania laws. Study the state's rules and regulations concerning short-term loans in the state. Find available alternatives.

LendYou will help you get the cash you need when you need it. You can apply for Payday Loans, Installment Loans or Personal Loans, etc. Compare the lenders and get matched with the best one.

  • MIN Loan Amount: $100
  • MAX Loan Amount: $35000
  • Terms: Varied
  • Rates and fees: Starting at 4.99% APR
  • Turnaround Time: 1 business day
  • $100 - $1000 Payday Loans
  • $1000 - $5000 Installment Loans
  • $5000 - $35000 Personal Loans
  • 18 years of age or older
  • U.S. citizenship
  • Valid checking or savings account with direct deposit
  • Minimum regular income of $1,000 per month
  • Not be a regular or reserve member of the Air Force, Army, Coast Guard, Marine Corps or Navy (or be a dependent of someone who is,) serving on active duty under a call or order that does not specify a period of 30 days or fewer.
Pros
  • High up to $15,000 loan amounts. 
  • Minimal restrictions on how you can use your loan.
  • No collateral or guarantor.
  • Bad credit is OK. 
Cons
  • It's not a direct lender, so you'll need to clarify rates and terms with the company you are matched with. 

 

Greenlight Cash created an online platform to connect consumers like you with reliable lenders across the country. They partner with a large network of professionals so you get a chance to work with one of them and meet the challenge of improving your financial situation in the most effective way. Once you tap submit, you get one step closer to receiving the funds.

  • Payday Loans
  • Installment Loans
  • Personal Loans
  • be a legal U.S. resident
  • be at least 18 years old
  • have a stable source of income
  • be currently employed
  • have an active bank account
Pros
  • Unrivaled flexibility and accessibility.
  • Predictable monthly payments

  • Quick and simplified borrowing process

  • Any credit is welcome
Cons
  • Not a direct lender.

 

GoGoPaydayLoans offers Payday Loans at affordable rates with convenient repayment terms. 

  • MIN Loan Amount: $100
  • MAX Loan Amount: $1000
  • Terms: Vary by state.
  • Rates and fees: 261% to 782% APR
  • Turnaround Time: 1 business day

$100 - $1000 Payday Loans

  • Active checking account open for 90+ days
  • US citizen or permanent resident
  • Personal and work phone number
  • Valid email address
  • 21+ years old (19+ in Alabama)
  • Social Security number (for Indiana residents only)
Pros
  • You can get even as low as $100.
  • Quick funding on the next business day.
  • Money can be used for any personal needs.
Cons
  • Not available in every state.
  • APR can be more than 153.73% depending on your state.
  • High late payment fees.

 

Indyloan.com offers Personal Loans online at affordable rates with convenient repayment. 

  • MIN Loan Amount: $100
  • MAX Loan Amount: $5000
  • Terms: Vary by state
  • Rates and fees: Varied
  • Turnaround Time: 1 - 2 business day

Personal Loans

  • Active checking account open for 90+ days
  • US citizen or permanent resident
  • Personal and work phone number
  • Valid email address
Pros
  • Quick - no driving, waiting, faxing, paperwork.
  • High approval rate even for bad credit borrowers.
  • Online Payday cash advance with no collateral or co-signer.
  • 24 / 7 online service.
Cons
  • High interest rates.
  • Available not in all the states.
  • Only loans up to $5000 are available.

 

Extralend.com offers Personal Installment Loans online at affordable rates with convenient repayment. 

  • MIN Loan Amount: $100
  • MAX Loan Amount: $3000
  • Terms: 6 months - 2 years
  • Rates and fees: Varied
  • Turnaround Time: 1 - 2 business day

Personal Installment Loans

  • At least 18 years of age
  • US residence
  • A valid telephone number and email address
  • An active bank account in your name
  • Be employed for at least 90 consecutive days with the same employer
  • Meet minimum income guidelines
Pros
  • Quick - no driving, waiting, faxing, paperwork.
  • High approval rate even for bad credit borrowers.
  • Online Payday cash advance with no collateral or co-signer.
  • 24 / 7 online service.
Cons
  • High interest rates.
  • Available not in all the states.
  • Only loans up to $3000 are available.

 

Table of Contents:

Are Payday Loans legal in Pennsylvania?

Why are Payday Loans illegal in Pennsylvania?

Pennsylvania Payday Loans Laws

Pennsylvania Payday Loans online laws

Does Pennsylvania law allow Payday Loans for bad credit borrowers?

Pennsylvania Payday Loans news  - latest changes

Pennsylvania Payday Loans historical background

Pennsylvania Payday Loan alternatives

Are Payday Loans Legal in Pennsylvania?

Short-term Payday Loans in Pennsylvania are available but with certain restrictions imposed by the Check Cashing Licensing Act of 1998, 505(a). The Payday Lending legislation covers all the parts of the process concerning:

  • Payday Loan amounts
  • Payday Loan repayment terms
  • Payday Loan online direct lenders
  • Payday Loan stores near you
  • Payday Loan interest rates and other fees
  • Payday Loan collecting practices
  • Payday Loan default penalties
  • The number of outstanding Payday Loans as well as a cooling-off period in-between etc.

Read more: Payday Loans in Pennsylvania

the Check Cashing Licensing Act of 1998, 505(a) caps all short-term loans at 6.00% APR. 

For other details  and information on Payday Loans in Pennsylvania contact Pennsylvania Department of Banking, 17 N. Second Street, Suite 1300 Harrisburg, PA 17101, (800) 600-0007.

Why are Payday Loans restricted in Pennsylvania? 

The Government considers Payday Loans too expensive and often associated with lenders' predatory practices. That's why in Pennsylvania Payday Loans are limited by law. Still, there still exist some banks and online companies offering similar types of cash advance suitable to cover any unexpected emergencies.

Pennsylvania Payday Loan laws 

It is not often that Pennsylvania can tout having a model law, but we currently have one of the top “payday lending” laws in the nation, protecting Pennsylvanians from being charged very high-interest rates.

Шt's necessary to keep in mind that even if you qualify for a loan it doesn't mean you get one. Don't forget about the restrictions on small-dollar loans in Pennsylvania state. 

However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for an online Payday Loan in Pennsylvania.

If you haven't succeeded in finding the necessary cash advance, there are always other options to receive the necessary funds in Pennsylvania: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.

Pennsylvania Payday Loans online laws 

Cash advances (payday loans) from both storefront and online lenders are restricted by 6.00% APR usuary cap by the Check Cashing Licensing Act of 1998, 505(a). It also concerns online lenders which must operate in accordance with all relevant state and federal laws. Otherwise, they may be liable to Pennsylvania Department of Banking, 17 N. Second Street, Suite 1300 Harrisburg, PA 17101, (800) 600-0007 for law violations. 

Bankrupt by Design: Payday Lenders Target Pennsylvania Working Families.pdf

The current Pennsylvania cap is an annual interest rate of approximately 24%, a tiny fraction of the high-interest rates that accompany traditional payday lending in other states. The Pennsylvania Supreme Court in 2010 strengthened the state’s payday lending law by ruling that online and out‐of‐state lenders must follow the law when they operate in Pennsylvania. In addition, alternative lending options exist allowing consumers to take out small loans without being charged excessively high annual interest rates.

The law obligates Pennsylvania Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree acknowledge the notification by signing the contract.

Does Pennsylvania law allow Payday Loans for bad credit borrowers? 

The average credit score in Pennsylvania is 687, placing it in the fair range. But it doesn't mean that those who have a worse credit can't apply for the necessary cash advance in Pennsylvania. 

  • First of all, there're some companies in Pennsylvania providing similar to Payday loans services to borrowers with both good and bad credit score.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

Pennsylvania Payday Loans news  - latest changes

Some 80,000 Pennsylvanians will receive restitution under a settlement announced between the attorney general and the national online payday lender. The Government attempted to fight against an illegal online payday loan scheme. Some lenders allowed borrowers to sign up for loans and lines of credit at effective interest rates as high as 448%. 

Under the settlement, all remaining loan balances are voided. In addition, consumers who repaid more than the loan principal and an interest rate above 6% will share in a multimillion-dollar restitution fund.

Pennsylvania Payday Loans historical background 

The history of Payday Loans in Pennsylvania
1998 Payday Loans were made illegal in the state of Pennsylvania.
2018 There was an attempt to legalise the payday lenders' activity as of "pawn-brokers" but unsuccessfully.
Till present days Payday Loans in Pennsylvania are prohibited.

Pennsylvania Payday Loan alternatives 

If you're looking for instant cash advance in Pennsylvania but not a Payday Loan, consider other alternative ways to get the necessary funds:

  • Apply for a Pennsylvania Installment Loan - $1000 - $5000 cash advance repaid over several months or years in equal installments.
  • Take out a Car Title Loan if you own a vehicle to use as collateral.
  • Sell some of your valuable stuff online or at a pawn-shop.
  • Apply for Pennsylvania Tribal loans. Tribal lenders can avoid the state's caps and limits as they operate outside the state regulations. 
  • Consider borrowing from a bank or credit union. U.S. Bank, the fifth-largest bank nationally, is lending up to $1,000 to cash-strapped consumers through its Simple Loan program.
  • Qualify for one of Federal or Pennsylvania government assistance programs: Low Income Energy Assistance Program (LIEAP), Pennsylvania Health Care Cost Containment System (AHCCCS), Supplemental Nutrition Assistance Program (SNAP), The Emergency Food Assistance Program (TEFAP), Commodity Senior Food Program (CSFP), Congregate and Home Delivered Meals, Cash Assistance, Child Care Assistance.

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