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Article: Lawsuit Greets Payday Lender's Pa. Workaround.(Advance America Cash Advance Centers Inc. )
- Article from:
- American Banker
- Article date:
- September 28, 2006
- Author:
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Three months ago, after its bank partner quit the payday lending business under regulatory pressure, Advance America Cash Advance Centers Inc. introduced an open-ended line of credit so it could keep doing business in Pennsylvania.
Now the state is attacking the line of credit itself.
Gov. Edward G. Rendell, through the state's Department of Banking, filed a lawsuit against Advance America on Wednesday in a state court in Philadelphia, saying the line violates Pennsylvania's 6% usury cap for unlicensed lenders.
Jamie Fulmer, a spokesman for the Spartanburg, S.C., company, said the department has made its position clear "in public comments and ...