Are tribal loans legal in Pennsylvania?
Effectively no. Pennsylvania has pushed tribal lenders out.
AG v. Think Finance (2014): CDCA licensing + 6%/24% caps apply; loans void — effectively eliminated tribal lending.
Key change: 2014.
The law in Pennsylvania
- Rate cap
- Payday lending is effectively prohibited: the Loan Interest and Protection Act ("Act 6") sets a 6% general usury cap, and the Consumer Discount Company Act caps licensed small-loan APRs around 24%.
- Key law
- Loan Interest and Protection Act (Act 6, 6% usury) and Consumer Discount Company Act (CDCA).
- Enforcement
- In Commonwealth v. Think Finance, the AG’s 2019 settlement resolved a scheme (via Plain Green, Great Plains Lending and MobiLoans) charging up to 448% APR; Think Finance voided all outstanding loans and paid $40M. Pennsylvania has also settled with debt collectors over illegal tribal-loan collection.
The 2019 Think Finance settlement targeted a $133M scheme charging about 448% APR to nearly 80,000 Pennsylvanians — cancelling all outstanding balances and adding $40M in relief.
What it means for you
Payday and tribal high-cost loans made to Pennsylvania residents are illegal and unenforceable, and even collecting on them can violate state law. Borrowers may owe nothing above the 6% cap and may be eligible for restitution.
If you already borrowed in Pennsylvania
A loan that violates Pennsylvania's ban may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- File a complaint with the Pennsylvania Attorney General’s Bureau of Consumer Protection and the Department of Banking and Securities.
- Since interest above the 6% usury cap is unlawful, dispute the loan and check eligibility for settlement restitution (e.g., the Think Finance settlement).
Frequently asked questions
Are tribal loans legal in Pennsylvania?
No, not in any practical sense. Pennsylvania has pushed high-cost lenders out, and a tribal loan made to a Pennsylvania resident is frequently void or uncollectable. Payday and tribal high-cost loans made to Pennsylvania residents are illegal and unenforceable, and even collecting on them can violate state law. Borrowers may owe nothing above the 6% cap and may be eligible for restitution.
What is the maximum legal interest rate in Pennsylvania?
Payday lending is effectively prohibited: the Loan Interest and Protection Act ("Act 6") sets a 6% general usury cap, and the Consumer Discount Company Act caps licensed small-loan APRs around 24%. The controlling law is the Loan Interest and Protection Act (Act 6, 6% usury) and Consumer Discount Company Act (CDCA). Tribal lenders argue this cap does not bind them because they answer to tribal law — that argument is exactly what state enforcement and private litigation have been testing.
Can a tribal lender sue me or collect in Pennsylvania?
In Commonwealth v. Think Finance, the AG’s 2019 settlement resolved a scheme (via Plain Green, Great Plains Lending and MobiLoans) charging up to 448% APR; Think Finance voided all outstanding loans and paid $40M. Pennsylvania has also settled with debt collectors over illegal tribal-loan collection. Sovereign immunity protects a lender from being sued; it does not give it extra power to collect from you, and it does not override Pennsylvania law on whether the debt is enforceable in the first place. Threats of arrest are always false.
Do I still owe a tribal loan taken out in Pennsylvania?
Possibly not — and this is the question worth answering before you pay anything more. Where a loan exceeds Pennsylvania's limits it may be void or uncollectable regardless of what you signed. Get the answer before you keep paying, and check whether your lender is one of the closed brands whose balances were cancelled in a settlement.
Who do I complain to about a tribal lender in Pennsylvania?
File a complaint with the Pennsylvania Attorney General’s Bureau of Consumer Protection and the Department of Banking and Securities. Since interest above the 6% usury cap is unlawful, dispute the loan and check eligibility for settlement restitution (e.g., the Think Finance settlement). You can also file with the federal CFPB, which accepts complaints about tribal lenders regardless of your state.