Pennsylvania Payday Loans

Relevant Legal Excerpts for Pennsylvania Payday Loans

Consumer Discount Company Act

Section 13. Powers Conferred on Licensees.
In addition to the general powers conferred upon a corporation by the Business Corporation Law of this Commonwealth, a corporation licensed under this act shall have power and authority:

A. To lend money, credit, goods or things in action and charge, contract for, receive or collect charges herein provided.

B. To lend money on the security of real or personal property or without security.

C. To lend money on promissory or judgment notes with or without co-makers, endorsers, guarantors or sureties.

D. To purchase contracts evidencing an agreement to pay a sum certain in money or credit at a fixed or determinable time.

E. To charge, contract for, receive or collect interest or discount at a rate not to exceed nine dollars and fifty cents ($9.50) per one hundred dollars ($100) per year when the contract is repayable within forty-eight (48) months from the date of making. When the contract is repayable more than forty-eight (48) months from the date of making, the rate of interest or discount which may be charged, contracted for, received or collected, shall not exceed nine dollars and fifty cents ($9.50) per one hundred dollars ($100) per year for the first forty- eight (48) months of the term of the contract plus six dollars ($6) per one hundred dollars ($100) per year for any remainder of the term of the contract. Such interest or discount shall be computed at the time the loan is made on the face amount of the contract for the full term of the contract from the date of the contract to the date of the scheduled maturity notwithstanding any requirement for installment payments. On contracts for periods which are less or greater than one year, or which are not a multiple of one year, the interest or discount shall be computed proportionately on even calendar months: Provided, however, That for a period of less than one month the computation may be based on a full calendar month. The face amount of any note or contract made pursuant to this act may, notwithstanding any other provision, exceed twenty-five thousand dollars ($25,000) by the amount of interest or discount and service or other charge authorized by this act collected or deducted in advance or added to the principal at the time of making the loan. As an alternative to the rates provided for in this clause, a licensee may charge, contract for, and collect interest at the rate and in the manner provided for in section 17.1 A: Provided, however, That on loans secured by a security interest, mortgage or other lien on real property, and in which the principal amount exceeds five thousand dollars ($5,000), a licensee may not charge, contract for, receive, or collect interest in excess of the rate specified in section 9 of the act of December 12, 1980 (P.L. 1179, No. 219), known as the "Secondary Mortgage Loan Act."

F. To charge, contract for, receive or collect on any contract a service charge of one dollar and fifty cents ($1.50) for each fifty dollars ($50), or fraction thereof, provided that the total service charge shall not exceed one hundred fifty dollars ($150) on any contract.

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