brand brand New Federal Court choice pertains the “ True Lender ” Doctrine to Internet-Based Payday Lender District Court for the Eastern District of Pennsylvania has highlighted again the regulatory dangers that the so-called “true lender” doctrine can make for internet-based lenders whom partner with banking institutions to ascertain exemptions from relevant state consumer security guidelines (including usury rules). Even though Court failed to achieve a concluding decision on the merits, it declined to just accept federal preemption as grounds to dismiss an enforcement action brought by the Commonwealth of Pennsylvania against an internet-based payday loan provider whom arranged for the state-chartered bank to invest in loans at interest levels surpassing the Pennsylvania usury limit. The attention prices on these loans far surpassed those allowed under Pennsylvania
