Tuesday, July 29, 2008
New Requirements for Internet Payday Lenders
Internet lenders will soon have to be licensed in Pennsylvania in order to do business here. The change comes as a result of a different interpretation of state law. Previously, the Consumer Discount Company Act only required lending companies that were located physically within the Commonwealth to hold a license. Department of Banking spokesman Dan Egan says the move will protect consumers. He says regardless of where a company is based, it should be held to Pennsylvania laws if it serves Pennsylvania residents. The new interpretation, which sets interest rate and fee limits on non-mortgage loans under $25,000, will require lenders to be licensed by February 2009.