News About the Ever-Changing Payday Advance Industry
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No — payday lending is illegal in Pennsylvania. The state's Loan Interest and Protection Law caps interest at 6% a year for unlicensed lenders, and even a licensed small-loan company under the Consumer Discount Company Act is held to about 24% — far below payday economics. Pennsylvania has aggressively enforced the ban, including a settlement that erased loans for tens of thousands of residents.
| Status | Prohibited — payday lending is illegal |
|---|---|
| Unlicensed-lender cap | 6% per year (Loan Interest and Protection Law / “Act 6”) |
| Licensed small-loan cap | About 24% per year (Consumer Discount Company Act) |
| Effect | Triple-digit-APR payday loans cannot legally be made |
| Enforcement | Strong — e.g., the Think Finance “rent-a-tribe” settlement |
| Regulator | Department of Banking and Securities; Attorney General |
| Law | Loan Interest and Protection Law (41 P.S. § 201); Consumer Discount Company Act (7 P.S. § 6201) |
Payday lending is illegal in Pennsylvania and is enforced by the Department of Banking and Securities. To report a violation or an illegal lender, use the online complaint form.
Legal alternatives in Pennsylvania include a payday-alternative loan from a credit union, an employer paycheck advance, nonprofit credit counseling, or a payment plan with the biller. See our guide to payday loans and alternatives.
Pennsylvania is among the states that sharply restrict or bar wage garnishment for ordinary consumer debts, so even after a court judgment a lender's ability to take your pay is limited. Pennsylvania does not run a statewide payday-loan database, so limits on how many loans you can hold are harder to track from lender to lender. Your rights when you cannot repay are set by a mix of federal and state law — these guides explain how they work:
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Pennsylvania Department of Banking and Securities (DoBS) before borrowing. Last reviewed 2026.
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No. Pennsylvania's 6% usury cap and the Consumer Discount Company Act make high-cost payday loans illegal, and the state does not license payday lenders.
No. The rate caps apply to online and out-of-state lenders too — a payday loan offered to a Pennsylvania resident is unlawful.
A loan made above the legal rate may be unenforceable. Speak with a lawyer or legal aid before paying — Pennsylvania has voided such loans in enforcement actions.
The Pennsylvania Department of Banking and Securities, or the Attorney General's office.
Pennsylvania
A payday cash advance lending business violated Pennsylvania consumer law by providing loans of as much as $500 to people in return for 6 percent interest plus a $150 monthly fee, a state court ruled Tuesday.
Pennsylvania
There are some organizations in Pennsylvania, such as The Ludwig Von Mises Institute, which support faxless payday loans and oppose the government regulation of it.
Pennsylvania
A Philadelphia woman has filed a multi-million dollar class action lawsuit against a Utah-based lender that makes online payday loans through sites.
Pennsylvania
Democratic rivals of millionaire Tom Knox finally saw something to smile about yesterday: a guy dressed as a shark outside the Philadelphia mayoral candidate’s campaign office.
Pennsylvania
In 1999, all over Pennsylvania, thousands of people strapped for cash lined up at the storefront offices of a short-term loan company.
Pennsylvania
At 9:30 a.m. today, shareholders arriving for Dollar Financial’s annual meeting were greeted by several dozen inflatable sharks and people in shark costumes as part of a protest organized by ACORN against the predatory faxless payday loans…
Pennsylvania
Another day, another story about the revenue of a cash loan company.
Pennsylvania
Pennsylvania credit unions don't just want to offer alternatives to payday loans - they're receive the monetary back-up to make this into a reality.
Pennsylvania
Thinking about a payday advance in Pennsylvania? There's now another option to consider.
Pennsylvania
Advance America, the nation's largest provider of cash loan services, says it intends to vigorously defend itself against a lawsuit filed by the Pennsylvania Department of Banking alleging the company is providing lines of credit to…