Feds target predatory lenders to small business, but Pennsylvania remains a haven for the industry

Last summer, Philadelphia lawyer Shane Heskin told Congress that Pennsylvania has robust laws to prevent consumers from being gouged on loans — but none protecting business owners.“Consumers have laws protecting them from usurious interest rates,” he said. “But for small businesses, those protection laws don’t apply at all.”Heskin defends business owners in court who get quick money from what he argues are deeply predatory “merchant cash advance” lenders. Although he and other industry critics have yet to gain traction among legislators in Harrisburg, warnings hit home when federal regulators …

Read More

HEDGE accordingly