Any company that sells pay day loans to customers in Pennsylvania but is based outside the state will soon be subject to new lending rules.

As of February 1st 2009, all companies engaging with customers in Pennsylvania must comply with the state's consumer discount company act (CDCA).

The department of banking said the act applies to fast money loan companies that offer non-mortgage loans of less than $25,000.

"A person licensed under the CDCA is authorized to negotiate or make loans to Pennsylvania residents pursuant to the rates, terms and conditions contained in the CDCA," states the department in its latest press release.

Thanks to the internet, it is possible for consumers to apply for quick pay day loans from anywhere inside or outside the state.

Matthew Glans, a legislative specialist at The Heartland Institute in Chicago, recently expressed concern that some lawmakers want to take away pay day loans from people who are in debt or who need an instant cash loan.

He told the Daily Herald: "These loans emerged to meet consumer demand when other sources of financing were unavailable."

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