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Pennsylvania House of Representatives
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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: April 25, 2018 02:15 PM
From: Representative Doyle Heffley
To: All House members
Subject: Updating Credit Services Act - Assess ability to repay
In the near future, I will be introducing legislation that makes the Credit Services Act consistent with the Small Dollar Rule of the Consumer Financial Protection Bureau. This amendment requires credit service organizations to assess a buyer’s ability to repay the extension of credit and clarifies that service fees and interest be completely and accurately disclosed.

The Credit Services Act was enacted in 1992. It allows credit service providers to offer credit services to customers, prohibits charging and collecting of advanced fees, permits fees to be charged and collected only after services have been provided and prohibits certain activities.

Technology has advanced and the marketplace has changed. Pennsylvania lags behind other states due to the ambiguity of the statute.

This legislation clarifies that service fees may be charged and collected in accordance with the statute and clarifies that the fees, interest and payment schedule be completely and accurately disclosed. This strengthens consumer protections in the statute by requiring that the credit service organization assess the customer’s ability to repay the extension of credit.

Please join me in cosponsoring this legislation.

Introduced as HB2429