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Article: Credit Line Is Key in Pa. Payday Twist.(payday loans, Pennsylvania)
- Article from:
- American Banker
- Article date:
- June 23, 2006
- Author:
CopyrightCOPYRIGHT 2006 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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No longer able to make payday loans in Pennsylvania now that its former bank partner has quit the business under regulatory pressure, Advance America Cash Advance Centers Inc. is offering an open-ended credit line there.
The lines, for up to $500, carry a monthly "participation" fee of $149.95, plus principal and interest payments. Expensive as that may sound, several analysts said it is no more so than a payday loan, which borrowers tend to roll over repeatedly, each time incurring fees.
A spokeswoman for the Pennsylvania Department of Banking said its legal team is "reviewing" the new product. Jamie Fulmer, a spokesman for Advance America, said it ...