Return of the Payday Loan

Written by David Schmidt. Posted in debt

Over the past decade the fluctuations for payday loans has been back and forth depending on the level of public interest and outcry. A lot of people think that the payday loan industry is evil and getting many people ensnared in debt in order to take advantage. Many lawmakers take these issues seriously and try to make a difference by regulating certain aspects. The only unfortunate aspect is that the people who are trying to utilize the payday loans in order to survive sometimes fight back as well.

In some northern states, the payday loan industry and those who use the funds are fighting back. Pennsylvania has labeled payday lending as predatory, but a new bill could legalize the industry completely. Even though people are using certain companies for payday lending already, getting additional funds in the way of a payday loan company is a big change for people of PA.

Power and Money in Government

One of the biggest reasons why the payday loan industry has been able to come and go is because of how much influence and money they have for the local governments. A lot of people dislike what is going on with payday lending and it is important to consider the repercussions of public opinion on the local governments. However, when the public opinion cools down a bit, the money can flow back to the government and change whatever needs to be altered.

When it comes to the Pennsylvania state government, the money has flowed back into this most recent bill so that they could allow for payday lending in a legal fashion within the state. Even though many other states already allow it, Pennsylvania is one of those that does not. Making sure that you have the right kind of loan could save your life, but these companies should not be able to alter the law in such a way!

Payday Lending Companies in PA Today

A large chain of payday lending is called ACE Cash Express. They typically offer payday loans and similar services, but because they are illegal in PA, they are forced to do other things. Namely, they are forced to sell money orders, process bill payments and a few other services as well. Altogether, it does not net them all that much money and it can’t help people in the way that they want to be helped.

However, this new bill can make it legal for ACE Cash Express to finally partake in some of the services that they would like to be offering. The most profitable of these is obviously payday lending where they can make high margins without worrying much about the cost.

Since 2005 companies have been pushing to bring back the payday lending as best as possible. It does not always happen but the money they have at their disposal makes it a lot easier for them to be successful.

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Comments (2)

  • Daniel Euergetes


    This industry relies on impulse. That they are legal in some places and not in others would make me question whether getting hooked would be a good idea or not. Most of their services come with inflated pricing and interest. Note that you find these places in poorer districts because for the payday loan people, this is big money.


    • David Schmidt


      Sadly, the payday loan industry is massive and that comes with a massive interest rate as well. These loans can be necessary when you have bad credit or no where else to turn in an emergency. If you do choose to get a payday loan I would suggest getting one from a reputable company and one that offers more of an installment loan where the rate is fixed and there is a set term on the loan. As well, make sure this loan can be paid back quickly or you will get caught in the trap as most people do.


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