A note from our friends at the Keystone Research Center:
In a closely divided 8 to 6 vote today, the Senate Banking and Insurance Committee approved Senate Bill 975, legalizing payday loans with annual percentage rates of more than 300%. The bill moves to the Senate floor, despite the opposition of veterans, seniors, faith groups, and a majority of Pennsylvanians.
The Keystone Research Center issued the following statement on behalf of the Coalition to Stop Predatory Payday Loans in Pennsylvania:
Senate Bill 975 rolls back the state’s longstanding protections against predatory payday loans. Pennsylvania has been recognized by both the Pew Charitable Trusts and the U.S. Department of Defense for having among the strongest laws in the nation to keep out predatory payday lenders. A 2010 Pennsylvania Supreme Court case held that loans made in violation of existing law are illegal, even when made online.
Senate Bill 975 would undo those protections, harming working families across the state. With this bill comes a higher likelihood of bankruptcies in Pennsylvania, and payday lenders gaining direct access to borrowers’ bank accounts. These are just some of the reasons that the bill faces opposition from a majority of Pennsylvanians.
The Coalition thanks those senators who stood with Pennsylvanians to oppose this bill: Senators Michael Stack, Lisa Boscola, Larry Farnese, Anthony Williams, Patricia Vance and John Rafferty. Democratic Chairman Stack made a passionate plea for the committee to do what veterans and others have asked: to reject this bill and keep our existing, strong consumer protections in place.
We are disappointed in those senators who stood with payday lenders by voting yes on this bill: Senators Pat Browne, Don White, Mike Brubaker, Kim Ward, Jake Corman, John Eichelberger, Joseph Scarnati and Jim Brewster.
Click here for more information about SB 975.
Payday loans are bad news.