Pennsylvania is a state located of United States where payday lending is not legal. Payday lenders are finding loopholes in the laws and provide payday loan to the residents of Pennsylvania.  The interest rate cap in the state is 26%, but Pennsylvania Payday Loans lenders rely on their partnerships with their federally chartered, out of state banks to claim they are exempt from this law. Annual interest rates generally amount to about 400% in Pennsylvania. Customers are generally charged nearly $150 per month in fees for loans up to $500.

Pennsylvania Payday Loans lenders and other out-of-state companies that make consumer loans to Pennsylvania residents will need to be licensed by the state Department of Banking and comply with state laws.