FOR IMMEDIATE RELEASE
Pittsburgh, PA -- On Tuesday, June 11, 2013, Pittsburgh City Council will pass a Will of Council opposing PA Senate Bill 975, which would open Pennsylvania to predatory lending practices that endanger working families. The so-called “consumer protection” measure would:
Allowing predatory lending in Pennsylvania will put a target squarely on the backs of working families, placing them at risk of falling into a trap of consecutive loans and balloon payments. With no consideration of ability to pay the loan at the time it is made, borrowers are forced to choose between paying for their everyday necessary expenses such as rent, food, and utilities, or making payments against the loan. Borrowers often have no choice then but to take out another loan to pay the balloon payment due. Industry data show that a typical borrower is stuck in nine payday loans per year, having taken out one right after the other. The Center for Responsible Banking found that over 76% of payday lenders’ revenue is generated from loans to borrowers who take out a new loan within two weeks of paying off their last payday loan.
Councilwoman Natalia Rudiak is the primary sponsor of the Will of Council opposing this State measure. “To call Senate Bill 975 ‘consumer protection’ is outrageously false. This bill will legalize loan terms that are currently illegal under state law, trapping working people into an endless loop of borrowing and reborrowing at exorbitant rates. In the wake of the 2008 financial crisis, the message is clear: state legislators need to stand up for the financial health of our communities--not the profit-driven interests of out-of-state corporations.”
The Will of Council will be presented and passed during the regular meeting of Pittsburgh City Council on Tuesday, June 11, 2013 beginning at 10:00 a.m. Councilwoman Rudiak will be available for comment at the conclusion of the meeting.