Regulatory Alerts2015-03-24
Bank Closed- and Open-End Direct Loans for the Purchase of Goods and Services
The Pennsylvania Department of Banking and Securities confirms that various banks may issue closed-end and open-end direct loans for goods and services without adhering to the exclusive regulatory provisions of Chapter 63 of the Consumer Credit Code. This determination relies on Section 303 of the Banking Code, which permits these institutions to lend at terms allowed by their respective state or federal supervisory authorities. Consequently, the general rule in Section 6304(e) of the CCC does not restrict these specific lending activities by state-chartered, federally-chartered, or out-of-state banks.
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