Pennsylvania lawmakers aiming to make short term lenders legal

Several Pennsylvania legislators are asking their fellow lawmakers to approve a bill that would allow short term lenders to operate within in the state. According to Philadelphia Daily News, short term lenders were forced out of Pennsylvania in 2006, but new legislation has been put forward in order to bring them back. One of the main reasons for the bill, says supporters, is to offer alternative finance options to the state's residents who otherwise might struggle to make ends meet. One of the bill's sponsors, state representative Chris Ross, says that many Pennsylvania citizens have to turn to risky internet lending companies to obtain loans, the source reported. The potential law is trying to help consumers by providing safer alternative finance, says the news source. The bill has already been voted on and approved by the state's House of Representatives, reports Penn Live. It is currently awaiting a vote from the Senate, which is why many supporters have become more vocal. Featured in the legislation are short term lending regulations, including forbidding borrowers to obtain loans until a prior one is paid off, and only allowing 25 percent of a borrower's income or either $1,000 to be taken out, whichever is lower, states the website.