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A Q&A guide to consumer finance regulation
in Pennsylvania. This Q&A addresses state-
specific laws governing the offering and sale
of consumer financial products and services,
including credit cards, residential mortgages,
and consumer loans, and covers topics including
licensing, fair lending, and unfair and deceptive
trade practices.
CONSUMER LENDING
1. Does your jurisdiction impose licensing requirements on
financial institutions engaged in consumer lending services? If
so, please:
Identify the state agency responsible for enforcing the relevant
statute.
Describe the types of licenses required, such as company,
branch, and individual licenses.
Identify which types of entities are subject to the licensing
requirement.
List any exemptions from the licensing requirement, including
minimum loan thresholds.
The following statutes and regulations govern the licensing of
financial institutions engaged in consumer lending services:
Non-mortgage consumer discount companies are governed by:
the Consumer Discount Company Act (7 Pa. Stat. Ann. §§ 6201
to 6219); and
title 10, sections 41.1 to 57.33 of the Pennsylvania Administrative
Code.
Money transmitters are governed by:
the Money Transmitter Act (7 Pa. Stat. Ann. §§ 6101 to 6122); and
title 10, sections 19.1 to 19.8 of the Pennsylvania Administrative
Code.
Motor vehicle finance companies are governed by:
title 12, sections 6101 to 6355 of the Pennsylvania Consolidated
Statutes; and
title 10, sections 41.1 to 57.33 of the Pennsylvania Administrative
Code.
Pawnbrokers are governed by:
the Pawnbrokers License Act (63 Pa. Stat. Ann. §§ 281-1 to 281-
32); and
title 10, sections 61.1 to 67.13 of the Pennsylvania Administrative
Code.
Check cashers are governed by:
The Check Casher Licensing Act (63 Pa. Stat. Ann. §§ 2301 to
2334); and
title 10, sections 81.1 to 81.62 of the Pennsylvania Administrative
Code.
STATE AGENCY
The Pennsylvania Department of Banking and Securities (PA DBS)
enforces these laws (7 Pa. Stat. Ann. §§ 6110 and 6212; 12 Pa. Cons.
Stat. §§ 6102 and 6274; 63 Pa. Stat. Ann. §§ 281-8 and 2304).
TYPES OF LICENSES
The PA DBS may issue the following types of licenses:
For non-mortgage consumer discount companies:
a consumer discount company license; or
a consumer discount branch company license
For money transmitters, a company license.
For motor vehicle finance companies:
a motor vehicle finance company license; or
a motor vehicle finance company branch license.
For pawnbrokers:
a pawnbroker company license; or
a pawnbroker branch license.
For check cashers:
a check casher company license; or
a check casher branch license.
Consumer Financial Regulation:
Pennsylvania
DANIEL G. MURRAY, YULIYA BENINA AND PJ HOFFMAN, PEPPER HAMILTON LLP, WITH PRACTICAL LAW FINANCE
View the online version at http://us.practicallaw.com/w-001-0949
