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Pennsylvania lawmakers gearing up for short term bill hearing

Sep 13, 2012 Quinn Thomas

Opponents and supporters of a potential law in Pennsylvania are getting ready to voice their opinions as the state's lawmakers begin to return from their summer break in September. The state house did not take action on the bill before breaking in late June, so now the legislation is up for debate once again. According to The Morning Call, Pennsylvania currently forbids these short term lending companies from operating within state lines. If the bill is passed, short term lenders would be able to provide their services to residents who are in need of financial help. However, there would be regulations that would be enforced to protect both the businesses and consumers. Firms would be required to obtain licenses and maintain a 12.5 percent financing fee. Additionally, they would not be allowed to give out more than $1,000 for each loan, or 25 percent of a borrower's gross monthly income. Opponents of the bill say that the legislation would not protect Pennsylvania residents, reports The Inquirer, and that short term loans are illegal in the state for a good reason. However, supporters argue that many consumers have to travel into other states or go online to gain access to short term lending solutions. If the law is enacted, there would be more financial options for individuals who live in Pennsylvania.