By Tony Romeo
HARRISBURG, Pa. (CBS) - The state House has passed a bill that would regulate so-called “payday” loans over the objections of members who say the legislation will make the problem worse.
Opponents of the bill say small, high-interest, short-term “payday” loans are already illegal in Pennsylvania. But the sponsor of the bill, Chester County House Republican Chris Ross, says it’s happening anyway.
“So we have Internet lending here. We have it happening in a way that the secretary of banking cannot control and cannot reach, and admits as much.”
So Ross says his legislation is necessary to provide consumers with protections but opponents like Philadelphia Democrat Curtis Thomas say creating regulations will simply end up legalizing loan-sharking.
“There is no redeeming value to the availability of these kinds of loans.”
The bill now goes to the Senate, where it is uncertain if it will be considered before the legislature’s summer recess.