63 Pa. Stat. § 2402

Current through Pa Acts 2024-53, 2024-56 through 2024-92

Section 2402 - Definitions

The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Applicant." A person who applies for a license under this act.

"Banking institution." A State-chartered bank, bank and trust company, savings bank or private bank, a national bank, a federally chartered or State-chartered savings association or a subsidiary of any of the foregoing.

"Consumer." An individual who owes money for personal, family or household expenses to at least one creditor.

"Consumer education program." A detailed and customized education program that:

(1) Is provided to a consumer prior to offering a consumer a debt management services agreement.

(2) Is designed to improve a consumer's ability to manage the consumer's personal and household finances and to otherwise improve the financial literacy of the consumer.

(3) Includes the following, tailored to the needs of the consumer: budgeting, saving, investing, managing debt and maintaining creditworthiness.

(4) Is not limited to determining whether a consumer will benefit from debt management services, but includes various options and strategies for addressing the consumer's debt problems and may include the provision of services for the purpose of improving a consumer's credit record, credit history or credit rating, but only to the extent that such services are incidental to providing the other elements of the consumer education program.

"Credit counseling agency." A person that provides debt management plan services to consumers for a fee, contribution or other consideration.

"Debt management services." The service of receiving funds periodically from a consumer and then distributing those funds to creditors of the consumer in partial or full payment of the consumer's personal debts.

"Debt settlement services." An action or negotiation made on behalf of a consumer with that consumer's creditors for the purpose of the creditor forgiving part or all of the principal of the debt incurred or credit extended to that consumer. The term shall not include any action taken to convince a creditor to waive any fees or charges.

"Department." The Department of Banking of the Commonwealth.

"Licensee." A person licensed under the provisions of this act.

"Payday loan." A short-term cash advance of $3,000 or less that is secured or facilitated by a consumer's personal check that is held for future deposit or by electronic access to the consumer's bank account. The term includes any form of this lending, notwithstanding the presence of some other element introduced to disguise the true nature of the transaction, such as the sale or provision of a good, service or commodity incidental to the advance of funds and notwithstanding the fact that the transaction is conducted in person, by mail, Internet or telephone, or through any other means.

"Person." An individual, corporation, partnership or other entity legally recognized by the Commonwealth for business purposes.

"Secretary." The Secretary of Banking of the Commonwealth.

63 P.S. § 2402

2008, Oct. 9, P.L. 1421, No. 117, §2, effective in 120 days [ 2/6/2009].