In March, 2010 I posted a blog about the high cost of payday loans, as high as a 426% interest rate. Payday loans are not the first choice of a consumer looking for a short term loan, and are generally sought in the most dire of financial positions. Pay day loans are often used by those in need of a small amount of money, they need the amount of money fast, on a fixed income, already have existing debt maxed out, lack of savings or are too embarrassed to go to a traditional lending institution.
Despite the high cost of credit associated with pay day loans, Pennsylvania Senate Bill 975 seeks to bring store front pay day lending back to Pennsylvania. If Bill 975 is approved, the accessibility to payday loans will not help those in financial distress, rather provide a gateway to excessive interest, late fees and penalties on those most financially fragile to begin with.
If there are any general questions or topics you would like information about relating to bankruptcy law in the Eastern Pennsylvania region, you may contact the Bankruptcy Lawyers at Sadek & Cooper at 215-545-0008 or email [email protected] Thank you.