Payday loans in Pennsylvania (called PA payday loans) should be registered or licensed in order for them to operate under the state law. When you decide to obtain this type of loan, you need to deal only with the legitimate companies. You will know this if they have a license when you check with the Office of Financial Regulation. It is also the avenue where you will file complaints against interest rates violation and any form of harassments. Frequently asked questions about the lending industries can also be found here.
What are the signs that a lending company is operating illegally?
1 – Loan contracts do not clearly stipulate the exact interest rates and charges. It is important that you need to read and see the terms of contract before you print your name and sign in.
2 – Representatives do not give you proper explanation of the terms of contract. When a company’s representative cannot give satisfactory explanation, you should start looking for another company.
Do not rush into signing a contract for a Pennsylvania payday loan (Pa payday loan) just because you are in desperate of money. You are financially vulnerable, which makes you an excellent target of opportunistic loan sharks. However, if you are lucky enough to find a legitimate and credible company, always try to keep your records clean and be responsible so that you can easily file for another loan when the need arises.
Other charges such as processing and verification fees should be paid aside from the interest. More than 10% of interest rate is not tolerable under the Pennsylvania state law. High interest rates will bury you deeper in your debt. The usual term of payment is within 7 to 31 days but can be extended as long as you pay the additional charges.
In cases wherein you cannot pay for the loaned amount and the interest fees secondary to losing your only source of income, the lending company can file for civil damages but not criminal case. Negotiation should be open between a legitimate company and the borrower if the transaction is indeed legal. You can’t be forced to pay the loaned amount and fees until you can find a stable job. It is advisable that you pay the loan as soon as you land with a job.