Victoria A. Reider
“This suit was filed to protect Pennsylvania consumers from a harmful product that we believe is payday lending by another name… Families who seek these types of loans are usually living paycheck to paycheck and need just a little bit more to make it to Friday. Preying on their need by charging exorbitant fees is simply unconscionable.”
Acting Banking Secretary Victoria A. Reider made this statement after a Commonwealth Court ruled that Advance America violated Pennsylvania consumer law…
According to an article by Mark Scolforo, the court decision prevents Advance America from issuing “Choice Line of Credit” loans or collecting on currently outstanding loans in Pennsylvania. The company may pursue allegations of constitutional violations.
Spartanburg-based Advance America has over 2,800 centers in the United States (including about 100 in Pennsylvania) making it the biggest payday loan company in the nation.
According to a statement released by the Department of Banking, Victoria A. Reider also said:
“The court has ordered this product taken off the market and, for that, I am thankful… When the Governor announced this suit, he called the product ‘outrageous’ and ‘one that took advantage of hard-pressed families.’ Today is a victory for those families.”
Victoria A. Reider is Acting Secretary of the Pennsylvania Department of Banking. Ms. Reider was appointed Acting Secretary in August 2006 and previously served as Chief Counsel to the Department. The Banking Department, which supervises Pennsylvania state-chartered banks and credit unions, also licenses more than 15,500 non-depository financial services companies involved in consumer loans. A link to the Department can be found in our list of State Regulatory Agencies for Payday Loans.
Sources:
Banking Department Calls Commonwealth Court Ruling a Victory for Pennsylvania Consumers - Ruling Says Advance America’s Line of Credit Violates State Law (Pennsylvania Department of Banking Website Press Release)
Court Rules Against High-Cost Loans by Mark Scolforo (Forbes / Associated Press)
Acting Secretary Victoria A. Reider (Pennsylvania Department of Banking Website)
It seems that the word unconscionable is a popular term when payday loan opponents refer to payday loans and similar services.
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