1Directing the Legislative Budget and Finance Committee, in
2collaboration with other State departments and agencies, to
3study consumer access to and the regulatory structure of
4short-term consumer credit.

5WHEREAS, Access to both long-term and short-term credit at
6fair and affordable terms enables Pennsylvanians to purchase
7goods and services, establish a strong credit rating and achieve
8long-term financial stability; and

9WHEREAS, Short-term credit is defined as either a loan or the
10deferral of payment in exchange for fees, interest or other
11considerations with a term of 12 months or less, and either
12unsecured or secured with collateral or by a personal checking
13account; and

14WHEREAS, There exists on the market a wide variety of short-
15term credit products designed to serve various segments of the
16consumer market, including installment loans, title loans, auto
17equity loans, payday loans, consumer discount company loans and
18revolving loan accounts, overdraft protection loans, fees for
19late or deferred payments and credit card cash advances; and

1WHEREAS, The General Assembly finds that a comprehensive
2review of the availability and regulation of short-term consumer
3credit products being offered to and utilized by Pennsylvania
4consumers will assist in the development and review of statutes
5and regulations relating to short-term credit; therefore be it

6RESOLVED, That the Senate direct the Legislative Budget and
7Finance Committee to study consumer access to and the regulation
8of short-term consumer credit in Pennsylvania, including
9interest rates and fees, utilization, consumer protections,
10conditions, length of loans and other factors relating to short-
11term consumer credit; and be it further

12RESOLVED, That the Legislative Budget and Finance Committee
13consult individuals involved in the delivery of short-term
14consumer credit products, consumers who utilize such products,
15local consumer credit counseling organizations, a Statewide
16consumer credit association and State government agencies
17responsible for oversight and regulation of the banking
18industry; and be it further

19RESOLVED, That the Legislative Budget and Finance Committee,
20at a minimum, study the following:

21(1) The number of individuals utilizing short-term
22credit products in this Commonwealth;

23(2) The number and types of entities providing short-
24term credit products to Pennsylvania consumers, including:
25State-chartered depository institutions; Federally chartered
26depository institutions; credit unions; Pennsylvania non-
27depository consumer finance companies; non-depository
28consumer discount companies in neighboring states; online
29lenders, including domestic, American tribal and
30international entities; and any other industry or entity, in-

1State or out-of-State, extending credit to Pennsylvanians;

2(3) The regulatory structure for short-term credit
3products being offered in Pennsylvania, including the
4interest rate and fees being charged for such products; the
5applicable State exemptions which allow such products to be
6offered with an Annual Percentage Rate in excess of the
7statutory cap; the applicable Federal laws and regulations
8which allow providers of short-term credit to offer such
9products in Pennsylvania; whether Federal laws and
10regulations exempt providers from regulation under
11Pennsylvania law; and any consumer protections and other
12conditions placed upon short-term credit products offered in
13Pennsylvania, as applicable;

14(4) A state-by-state comparison identifying the number
15of providers and consumers of short-term credit in each
16state, including applicable rates, consumer protections and
17other conditions of the states' laws regulating short-term
18credit products;

19(5) The number of "unbanked" and "underbanked" households
20in Pennsylvania, as defined by the Federal Deposit Insurance

22(6) The number of complaints filed against providers of
23short-term credit products with the Department of Banking and
24Securities and the Office of Attorney General Bureau of
25Consumer Protection, with the number of complaints being
26itemized into categories;

27(7) The geographic location of federally chartered and
28State-chartered depository institutions and the percentage of
29Pennsylvanians who are customers or members of these
30institutions; and be it further

1RESOLVED, That the committee prepare a report to the General
2Assembly that includes a comprehensive analysis of the short-
3term credit products being offered in Pennsylvania that meet the
4definition of short-term credit; availability of short-term
5lending; consumer education available and recommendations
6regarding the regulation of short-term credit products in
7Pennsylvania; and be it further

8RESOLVED, That the committee report on the effectiveness of
9consumer education efforts with regard to consumer credit and
10provide recommendations on additional consumer education
11programs; and be it further

12RESOLVED, That the committee report its findings, analysis
13and recommended regulatory changes to the General Assembly by
14March 31, 2015.