Skip to main content

Payday Lending Update

(via stoppaydayloanspa.com)
Last week, the House approved 300% interest rate debt to come flooding into the state. The House passed a bill to legalize predatory payday loans by a slim margin. (See how your representative voted here.) Now, the decision now rests in the hands of your Senator. Call today to share your feelings on payday loans.

Payday loans are small-dollar, extremely high-interest loans, which typically carry triple-digit interest rates of 300% annually or higher. They are called payday loans because they generally must be paid back in full, with all interest and fees, on the borrower’s next payday.

While payday lenders market these loans as “short-term” or “emergency” loans, they really are just a debt trap. Because the loans are so expensive, secured by access to the borrower’s checking account, and due in full just two short weeks later, most people who take out a payday loan are unable to pay it back and still have enough money to pay for their regular expenses. Borrowers then have to either renew the loan or take out another payday loan shortly thereafter just to make ends meet. This begins the debt trap cycle.

According to a comprehensive report on payday lending conducted by the Department of Defense, "The debt trap is the rule not the exception: the average borrower pays back $864 for a $339 loan.” Payday loans were so harmful to the finances and military readiness of our service members that Congress established a 36% APR rate cap for military families

Fortunately for Pennsylvania residents, payday lending at triple-digit interest rates has long been illegal under Pennsylvania law. Our state strictly regulates small-loan lenders: unlicensed lenders may charge only 6% interest annually and lenders licensed by the Banking Department may charge higher rates of about 24% annually.

Call today to share your feelings on payday loans.

Comments

Popular posts from this blog

Are You Registered to Vote?

As we get closer to the November elections, Google searches on how to register are increasing, which begs the question: Are you registered? Do you know how to sign up?

Pennsylvania and many other states require voter registration before Election Day - in Pennsylvania's case, voters must be registered one month ahead of time.  So if you recently moved, just turned 18, haven't voted in a while, or never registered before, the time to sign up is now.

PathWays PA has partnered with Rock the Vote to offer voter registration through this blog! You can fill out the form below to register or to make sure that you are registered.

Please take the time to register, and also consider pledging to vote in support of your economic values at wewontwait2016.org!

PS - click here to share a voter registration link on Facebook, Twitter, or Google+!




Register Now for National Audio Conferences on Job Scheduling

From our friends at CLASP Register now for three national audio conferences on job scheduling! Job schedules matter in many ways. For all workers, it helps when an employer is responsive to a request for a needed schedule change. And far too many workers have volatile and potentially destabilizing schedules. If you don't know when you are supposed to be at work until the last minute, how do you arrange child care or transportation? If your total hours fluctuate from week to week, how do you budget for rent and food? To address these issues and emerging policy opportunities, the Center for Law and Social Policy (CLASP) is hosting and sponsoring three Job Schedules Matter audio conferences.

The conferences, which are co-sponsored by the Center for Popular Democracy and the National Women's Law Center, will include comments from U.S. Senator Elizabeth Warren and Congressman George Miller on why they introduced the Schedules that Work Act. You'll also hear from workers about th…

Register for FRAC's Federal Nutrition Program Conference Calls

The Food Research and Action Center (FRAC) will host two public conference calls in October. Information on the calls follows below:
Breakfast Matters - Effective Messaging: Getting Positive Press in your Community

Thursday October 11, 3 – 4 pm ET
Click here to register.
Learn tips from a national communications firm about how to place your stories with local media and receive positive press coverage for your program.

Presenters: * Jon Dickl, School Nutrition Director, Knox County Schools, Tennessee
* Amber LaCroix, BRG Communications




Afterschool Meals Matter - Community Partnerships
Wednesday, October 17, at 1:00 pm EST

Click here to register.
Learn how you can connect with a myriad of community partners, from parent groups to corporate volunteer programs, who can offer you and your program their time, energy, and support. Community partners can assist you with meal preparation, programming, outreach to increase your participation, and ultimately to help build up community support and in…