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HB 639

An Act amending the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law, in preliminary provisions, further providing for definitions; and, in protective provisions, providing for truth in lending.

2025-2026 Regular Session Introduced by Missy Cerrato and 12 co-sponsors

Pennsylvania updates 1974 lending law with modernized definitions and truth-in-lending protections to regulate contemporary loan products and enhance borrower transparency.

Referred to Commerce
0
WeVote Research Nonpartisan
Bill Summary · HB 639

Legislative bill overview

HB 639 amends Pennsylvania's 50-year-old Loan Interest and Protection Law by updating definitions in the preliminary provisions and adding new truth-in-lending protections. The bill modernizes lending disclosure requirements to better inform borrowers about loan terms and costs in contemporary financial markets.

Why is this important

The original 1974 law predates modern lending products like online loans, payday lending, and alternative financial services. Updating truth-in-lending requirements helps protect Pennsylvania consumers from hidden fees and predatory lending practices while ensuring lenders operate transparently. This affects millions of residents who borrow money for personal, auto, or small-business purposes.

Potential points of contention

  • Industry impact: Lenders may argue that expanded disclosure requirements increase compliance costs, potentially reducing credit availability or raising borrowing costs for consumers
  • Definitional scope: The bill's updated definitions could significantly expand or narrow which lenders and loan products fall under the law's protections, creating disputes about regulatory reach
  • Implementation details: The bill text doesn't specify exact disclosure formats or timelines, leaving ambiguity about how lenders must comply and whether existing practices suffice

Compiled from official sources — confirm details with the bill’s official record.

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