Senate Bill Could Let Payday Lenders Circumvent State Usury Laws

Consumers sound off on bills in Congress to allow payday lenders to partner with banks to circumvent state usury laws:

In Pennsylvania’s Courier Times:

House Resolution 3299 and Senate Resolution 1642 would allow payday lenders or “non-banks” to ignore state interest rate caps and make high-rate loans. If they pass, we would see vulnerable Pennsylvanians become prey to loans with 400 percent interest rates or even higher.

In Pennsylvania’s Intelligencer:

Strong state rate caps, coupled with effective enforcement by states, remain the simplest and most effective methods to protect consumers from the predatory lending debt trap. Unfortunately, Sen. Toomey supports this toxic legislation. If he doesn’t stand up for Pennsylvania consumers, who will?

In Pennsylvania’s York Dispatch:

Everyone can relate to a story about someone they know falling into financial struggles, causing harm and substantial burdens to families. If we allow predatory payday lenders in Pennsylvania, the temptation of accessing quick cash will introduce too many Pennsylvanians to a cycle of debt. According to the Center for Responsible Lending, 76 percent of payday loans are to pay off previous payday loans.

In Virginia’s Danville Register & Bee:

I am a lifelong resident of Danville and have been a member of the Danville Chapter of Virginia Organizing since 2011. I’m writing to ask Sen. Mark Warner to use his position on the Senate Banking Committee to stop payday lenders from taking advantage of me and my neighbors.

I have personal experience dealing with payday loans. I would never want to tell someone what to do, but the best thing you can do is stay away from them. The interest rates are too high, and they’re not worth it. The process has been improved in recent years. You now have longer to pay back the loan and you can only get one loan at a time.