Pennsylvania Payday Loans

Check cashers are specifically prohibited from making payday loans. 63 Penn Stat. Ann. § 2325. Otherwise, Consumer Discount Company Act applies. 7 Pa. Cons. Stat. §§ 6201 et seq.
Status: Prohibited

Payday loans are prohibited in the state of Pennsylvania, pursuant to 63 Penn Stat. Ann. § 2325.

Payday Loan Lending Laws in Pennsylvania

As of February 2017, there are no payday loan centers operating in the state of Pennsylvania. In 1998, state legislators passed a law that prohibited check-cashing companies from issuing loans based on post-dated checks. The law came as a response to fees charged by check cashing stores, which were accused of growing exorbitantly high. The Pocono Record reported that, at the time the law went into effect, the Attorney General’s Office had received reports of high fees. Although the payday lenders operating in Pennsylvania were not technically considered check cashing companies, they became subject to the law as a borrower has to provide a postdated check to receive payday loan funds. As a result, the law effectively ended payday loans in the state. The Consumer Discount Company Act also regulates interest rates. Small loan lenders are not allowed to charge more than 6 percent interest on any short-term loan they issue in the state. Lenders that do charge more must obtain licensure to do so.

What is a payday loan?

Payday loans are short-term financial loans between $100 to $500 that have to be paid back within a short time frame, typically within two weeks. Due to the easy application process, payday loans have become popular in other states in recent years. Unlike traditional loans through banks and creditors, a potential borrower does not need to produce collateral or have a good credit rating to apply for a payday loan. Furthermore, depending on the state in question, a borrower might be able to take out multiple loans with different lenders.

The ease of the application process, coupled with the lack of requirements as to how a borrower can use the loaned funds, adds to the popularity of cash advance loans. If a borrower needs to pay the water bill before their next paycheck, a payday loan can help them cover the bill and repay the lender in the next pay cycle. Should a borrower need to address unexpected financial emergencies, such as car trouble or a doctor’s visit, a payday loan can help them there, too. With any financial loan, however, the borrower should take care to understand the loan terms and have a plan to pay the funds back before agreeing to the lender’s terms.

Loan Options

While payday loan centers cannot operate physically in the state of Pennsylvania, residents in need of a loan do have other options. If a traditional loan with a bank or creditor does not appear to be a realistic solution, a state resident can apply for a loan over the internet. Although state regulations prohibit a lender from operating in state, they can offer services in a method similar to credit card companies. Current regulations do not prohibit a borrower living in Pennsylvania from applying for a loan with a lender operating in Texas. There are numerous websites and online resources that a Pennsylvanian can use to locate and apply for such loans, but great care should be taken in doing so.

Lending Rules*

Lenders in the state of Pennsylvania are legally required to comply by the following limitations according to Check cashers are specifically prohibited from making payday loans. 63 Penn Stat. Ann. § 2325. Otherwise, Consumer Discount Company Act applies. 7 Pa. Cons. Stat. §§ 6201 et seq.:

Small Loan Rate Cap:
$9.50 per $100 per year interest, plus service charge of $1.50 per $100 per year.
*The information displayed may not be current. For the most recent information, please visit

Regulatory Information

If you have a complaint against a Pennsylvania Cash Advance location you can contact your state regulator below:

Pennsylvania Department of Banking
Market Square Plaza, 17 N. Second Street Harrisburg PA 17101
(717) 214-8343
(717) 787-8773

Pennsylvania Check Cashers

Below you can find Pennsylvania check cashers in the following cities:

Pennsylvania Statistics**

The following information is key demographic data for the state of Pennsylvania from the Census bureau.

Total Population:
Median Household Income:
Poverty Rate:
Median Gross Rent:
High School Graduate or Higher:
Bachelor's Degree or Higher:
**The information displayed may not be current. For the most recent information, please visit

Borrow Responsibly

The best way to use any short-term loan should be to address short-term financial emergencies that can be paid back in a short amount of time. However, the very nature of emergency situations can make it difficult for a potential borrower to do the proper research and ask the right questions about a payday loan before agreeing to the terms. In that regard, Pennsylvania law can be both a blessing and a curse: in-state prohibitions force a potential borrower to put in the work of finding the right lender, but financial pressure can make such work stressful and does not guarantee a borrower will make the best choice. Short-term loans should never be used for long-term financial planning or anything other than an emergency situation; doing otherwise can put the borrower in a financial situation that can prove very difficult to escape. is an independent comparison service provider. Reasonable efforts have been made to maintain accurate information throughout our website; however, all information is presented without warranty or guarantee. may receive compensation from our partners, including, but not limited to, clicking on links and lead generation.