TribLIVE’s Daily and Weekly email newsletters provide the news headlines you would like and information you want, straight to your inbox.
Last summer time, Philadelphia attorney Shane Heskin told Congress that Pennsylvania has robust guidelines to avoid customers from being gouged on loans вЂ” but none business that is protecting.
вЂњConsumers have actually rules protecting them from usurious rates of interest,вЂќ he said. вЂњBut for smaller businesses, those protection guidelines donвЂ™t apply at all.вЂќ
Heskin defends business people in court whom have fast funds from just what he argues are deeply predatory вЂњmerchant cash advanceвЂќ lenders. A Philadelphia lender of more than $600 million to small businesses nationwide although he and other industry critics have yet to gain traction among legislators in Harrisburg, warnings hit home when federal regulators brought a sweeping lawsuit against Par Funding.
The lawsuit described Par Funding as an вЂњopportunisticвЂќ loan provider that charged merchants interest that is punishingly high 50%, an average of, but usually astronomically more вЂ” to borrow money.