State House Faces Short-term Lending Program House Bill 2191
State House Faces Short-term Lending Program House Bill 2191
There is a kind of short-term lending program being considered as of the moment by the state House. The lending program involves a 14-day, $300 loan together with approximately $42.50 of fees and interests.
The House Bill 2191 is dubbed by supporters as a consumer protection measure. In contrast, it is considered as a bankruptcy by design by opponents because some banks in the state are offering two-week or payday loans with 369 percent of percentage rates every year.
Last May 8, the meeting was held and one of the members of the House Consumer Affairs Committee who voted in support of the bill was State Rep. Gene DiGirolamo. However, although he voted yes, DiGirolamo still have a few worries about it and is still contemplating whether or not it suits the people of Pennsylvania. He added that voting in favor of the bill does not indicate right away that it is supported by a representative.
The lending bill was co-sponsored by State Rep. Frank Farry. He said that there are worse loan programs offered through other countries and states than the bill.
According to Online 1-Hour Loan, a company based in California, the bill links borrowers to banks that offer fees ranging from $15 to $25 every $100 loaned for 1 to 15 days or more. Consumers can loan up to $1,500 and should earn a minimum of $1,000 every month. In addition, the company said that bad credit is not a hindrance in getting a loan.
On the other hand, there are also critics of the House Bill 2191. One of them is the Keystone Research Group.
Moreover, the Navy-Marine Corps Relief Society feels the same way. In fact, it thinks the bill will be mostly risky to retired sailors, Marines and their respective families.
Also, credit counselor Joan Reading said that any kind of short-term lending is opposed by the Credit Counseling Center of Bucks County.
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