Pennsylvania Shelves Bill to Legalize Payday Loans
By Desmond CarlislePayday Loan Writer
Payday loan companies in Pennsylvania have take a hit, as a bill that would have increased the proliferation of the cash advances in the state, according to the Philadelphia Inquirer.
State Senator Gibson E. Armstrong, a Lancaster Republican, has indicated that his banking and finance committee will not debate on a House bill legalizing payday loans — a stunning reversal to lenders specializing in the short-term cash advance loans.
Industry lobbyists have warned legislators that the loans would be made anyway by lenders acting as agents for out-of-state banks. But instead, at least for the moment, federal banking regulators cracking down on those partner banks, and payday lenders are leaving the Keystone State.
