Tuesday, November 16, 2010

PA Supreme Court says payday lenders must abide by state regulations

The Pennsylvania state Supreme Court ruled that out-of-state payday lenders must abide by the state’s banking regulations, even if the lenders do not have a physical presence in the state. The case, Cash America Net of Nevada vs. the Commonwealth of Pennsylvania and the Department of Banking, pitted an online payday lender that offers cash advances with interest rates of over 1,200 APR against a regulatory apparatus that had sought to enforce lending rates and requirements. The unanimous 7-0 ruling affirmed an earlier ruling from the court. It is unlikely that Cash America will be able to appeal the decision to the U.S. Supreme Court.

To read the decision, click here.

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