Governor Edward G. Rendell
“Under this outrageous product, a person who borrows $500 and makes minimum monthly payments ends up paying back more than $4,000 over about two years… Advance America may not be making payday loans in Pennsylvania anymore, but they are still trying to take advantage of hard-working, hard-pressed families.”
Pennsylvania Governor Edward G. Rendell announced a lawsuit against national payday lender Advance America over their “Choice Line of Credit” product…
Governor Rendell filed the complaint against Advance America for “providing lines of credit to borrowers without a license and with interest and fees in excess of state law.”
Under the “Choice Line of Credit” product, consumers can borrow up to $500 at 5.98 percent interest with minimum monthly payments of $20 and a “monthly participation fee” of $149.95 (which is charged each month regardless of whether a consumer borrows money).
In the press release, Governor Rendell also criticized payday lenders:
“Payday lenders prey on people who live paycheck to paycheck. These families have few options when faced with an unexpected emergency like a car breakdown or a child’s illness… It’s no coincidence that so many of these companies are found in working-class neighborhoods.”
Source: Governor Rendell Announces Lawsuit to Protect Pennsylvania Consumers Against Payday Loan Company (Governor’s Press Office)
Copies of the press release and complaint are available at the Pennsylvania Department of Banking website, which can be found in our list of State Regulatory Agencies for Payday Loans.
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