Pennsylvania State Agency Urges Consumers to Avoid Unlicensed Lenders

HARRISBURG, Pa., Feb. 12, 2015 /PRNewswire-USNewswire/ -- The Department of Banking and Securities is urging Pennsylvania consumers who are seeking personal loans from companies other than banks or credit unions to make sure their lender is licensed by the Pennsylvania Department of Banking and Securities.

The department's settlements with CashCall, Inc. in July 2014 and Advance America earlier this week highlight the importance of not dealing with unlicensed lenders.  These companies made loans to consumers at interest rates that far exceeded those allowed by Pennsylvania laws that govern consumer lending: the Consumer Discount Company Act and the Loan Interest and Protection Law. In addition, these companies were not licensed to make loans to Pennsylvania consumers, as required by these laws. 

"We have received many complaints from consumers concerning loans taken over the Internet or through the mail from so-called 'payday lenders'," said Robin L. Wiessmann, Acting Secretary of Banking and Securities. "We cannot stress enough that consumers are taking excessive risk by doing business with unlicensed, out-of-state lenders. Lenders licensed by the Department of Banking and Securities know Pennsylvania law and understand how they should treat their customers."

The Department of Banking and Securities can provide information about lenders who are licensed to do business in Pennsylvania. For more information, consumers can visit www.dobs.pa.gov or call the department's Consumer Hotline 1-800-PA-BANKS (800-722-2657).

Media contact: Ed Novak, 717-783-4721

SOURCE Pennsylvania Department of Banking and Securities

Related Links

http://www.dobs.pa.gov