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#37857 - 10/18/02 02:56 PM maximum interest rates
low profile Offline
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low profile
Joined: Jun 2002
Posts: 243
Pennsylvania
Does anyone know the maximum rate of interest which may be imposed for an installment loan according to PA law?
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#37858 - 11/20/02 09:11 PM Re: maximum interest rates
PABanker Offline
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PABanker
Joined: Dec 2000
Posts: 491
Blue Ball, PA 17506
I am teaching an ABA course, Law & Banking :Principles and this was a question from one of my students.

Here's what I located that may be helpful PA banking Code of 1965....302 sec 322, 319 stanard ACt 847 No. 356 and 322.

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#37859 - 03/14/03 06:34 PM Re: maximum interest rates
Anonymous
Unregistered

Really hate to re-visit an old post, but I am looking forsomething that references PA's usury law at 18%. Specifically, If a bank charges a rate of 18% and the APR on the loan document lists the APR as being over 18%, that seems to be a problem. Where can I look for a DEFINITIVE answer as to PA's usury rate???Thanks.

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#37860 - 03/14/03 08:24 PM Re: maximum interest rates
PABanker Offline
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PABanker
Joined: Dec 2000
Posts: 491
Blue Ball, PA 17506
You may want to try pabanker.com and go into the "resources" tab. There you will find the banking laws for PA. I hope you find what you need.

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#37861 - 03/17/03 02:07 PM Re: maximum interest rates
NancyF Offline
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NancyF
Joined: Dec 2001
Posts: 173
PA

Also, check the "Pennsylvania Bulletin". This is a weekly publication and the maximum interest rates are published here on a monthly (I think) basis. I do not know if the PA Bulletin is available on line. It is published by the state.

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#37862 - 05/26/05 04:08 PM Re: maximum interest rates
CHOIRBOY Offline
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Joined: Feb 2005
Posts: 39
Stumptown, Oregon, U.S.A.
I just resurrected this question, as I am interested in the current max rates on Section 322 loans. However, pabanker.com is a "members only" site. I am on the left coast and am not compelled to join PBA at this time. I have seen the Pennsylvania Bulletin online, but it only posts the max rate for residential mortgages (7% for June 2005). From what I have seen, the Banking Act of 1965 and its 1993 amendment don't actually state a max interest rate for consumer *(Section 322) loans. Any ideas?

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#37863 - 06/01/05 08:22 PM Re: maximum interest rates
complyguy Offline
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complyguy
Joined: May 2001
Posts: 494
PA
Section 309(a) seems to indicate 6%, but 309(d) says if the loan is more than $10,000, then the loan rate shall be governed by other law. Couldn't locate the 1975 amendment.


Section 309. Installment Loans (Including Revolving Credit Plans)
(a) Maximum rate-An institution may make a charge for an installment loan which complies with the requirements of this section, at a rate not in excess of six dollars ($6) per one hundred dollars ($100) per annum computed on the
original principal amount for the period of the loan. If such loan is one of a series of loans under an agreement ("revolving credit plan") providing a maximum outstanding balance of all such loans at any time, the institution
may make a charge at a rate not in excess of one percent per month on the actual outstanding balance of the loan.

(d) Maximum amount-The original principal amount of any loan, and the total of the principal balances of all loans to one borrower outstanding at any time, for which a charge is made pursuant to the authorization of this section shall not be in excess of ten thousand dollars ($10,000). For any
portion of one or more loans to one borrower in excess of such amount, the charge which the institution may make shall be governed by law other than
this section. ((d) amended July 30, 1975, P.L.108, No.56)

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#37864 - 06/06/05 03:59 PM Re: maximum interest rates
NancyF Offline
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NancyF
Joined: Dec 2001
Posts: 173
PA
Here's the link for the Pa. Bulletin. Look under the May 21 edition.

http://www.pabulletin.com/secure/data/vol35/

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#2067590 - 03/04/16 05:46 PM Re: maximum interest rates low profile
dutchbltz Offline
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Posts: 207
Resurrecting something really old here.... Does anybody know where the usury info may be found for loans other than Mortgages for PA? I have the mortgage info (from the PA bulletin every month) but am having no luck whatsoever for that info for other loans than mortgages. We has an auditor here this week who referenced its existence, specifically in regards to our unsecured consumer loans, but I'm struggling to find anything about it and exactly what is allowable. And I did already check PA Banker.... nothing useful there that I could see.

Thanks!

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#2068788 - 03/11/16 09:18 PM Re: maximum interest rates low profile
madukes Offline
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madukes
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Flyers Country
The various statutes governing usury and usurious lending practices in the Commonwealth of Pennsylvania can be found codified in the Pennsylvania Consolidated Statutes at Title 13. Moreover, criminal usury and penalties for the same can be found in Title 19 of Pennsylvania Consolidated Statutes.

Maybe this will help?

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#2068790 - 03/11/16 09:19 PM Re: maximum interest rates madukes
madukes Offline
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madukes
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Flyers Country
The various statutes governing usury and usurious lending practices in the Commonwealth of Pennsylvania can be found codified in the Pennsylvania Consolidated Statutes at Title 13. Moreover, criminal usury and penalties for the same can be found in Title 19 of Pennsylvania Consolidated Statutes.


maybe this might help?

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#2073161 - 04/08/16 07:27 PM Re: maximum interest rates low profile
dutchbltz Offline
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Posts: 207
This still isn't really helping me, or maybe I'm just blind....Can I ask a question? How do other PA banks ensure that they are not exceeding the maximum APR for consumer loans? Maybe there's another way. I can't imagine that this would be this hard to find if this is how we are supposed to be monitoring that....

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#2073275 - 04/11/16 01:16 PM Re: maximum interest rates low profile
rlcarey Online
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Galveston, TX
When in doubt, consult your legal counsel.
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