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Examples of Short-Term Lenders

Much has changed about short-term lending in recent years.

Short-term lending is no longer offered only by “payday lenders” but by:

  • Banks
  • Credit unions
  • Credit card companies
  • Various merchants, civic organizations, including AARP, and trade groups, including AFL-CIO
  • Today’s short-term lenders:

  • sought and received exemptions from the 24% APR cap and offer products that would not comply with the consumer protections supported by PACCA
  • Featured Consumer Protection Video: "Extended Payment Plan"

    Status of Short-Term Lending in PA

    Many forms of short-term credit exist today in Pennsylvania:

  • Border States
  • Internet Lending
  • Overdraft Protection
  • Cash Advances on Credit Cards
  • Street Corners
  • All of these forms of credit have been exempted from the 24% rate cap suggested by opponents and have none of the consumer protections offered by PACCA.

    PACCA's proposal will allow a cheaper form of short-term credit with under a tiered system of flat, fixed fees and offers the consumer protections found on our Consumer Center page.

    Economic Impact

    From the consumer perspective, PACCA's short-term credit proposal will:

  • Make short-term credit less expensive
  • Limit the debt exposure to a proportion of the consumer’s gross monthly income
  • Provide for benefits not available today, including the no-cost right to rescind and the no-cost extended payment plan
  • Authorize the state with new regulatory authority to ensure compliance and address any consumer complaints that may arise
  • From a labor and economic activity perspective, the proposal will:

  • Create thousands of jobs
  • Provide millions of dollars for governmental oversight, compliance verification, consumer credit counseling and financial literacy programs throughout the Commonwealth
  • Generate hundreds of millions of dollars in economic activity, which includes the wages and health care benefits for employees