A June 6 letter by Al Bowman of the Pennsylvania Consumer Credit Association ("A Better Loan Plan") wrongly implies that Pennsylvanians are left defenseless by current Pennsylvania law against predatory lenders. In fact, the opposite is true.
Pew Charitable Trusts credits Pennsylvania for having strong laws against predatory payday lending, while the Department of Defense has said Pennsylvania is among the states that "continue to maintain strong usury laws and to aggressively enforce those laws, thereby limiting the impact of predatory lending on their citizens." The state Senate is considering a bill that would unravel these protections and open the door to the payday loan debt trap in Pennsylvania.
Mr. Bowman failed to mention that his group supports the payday loan bill because his group is founded by payday lenders like Check 'N Go, which testified in support of the Senate bill as "head of the Pennsylvania Consumer Credit Association."
Mr. Bowman wrongly claimed that the opposition to payday loans is from "taxpayer-funded lobbying groups." This is simply not true. A broad coalition that includes pastors, seniors, military veterans, women's groups, credit counselors, legal advocates and many others are working to keep predatory payday lending out of Pennsylvania.
Keystone Research Center