Current through Pa Acts 2024-53, 2024-56 through 2024-111
Section 4806.2 - Making extortionate extensions of credit(a) Whoever makes an extortionate extension of credit, or conspires to do so, is guilty of a felony and, upon conviction thereof, shall be sentenced to pay a fine not exceeding ten thousand dollars ($10,000) or to undergo imprisonment not exceeding twenty (20) years, or both. Offenses are in no way limited by the amount of the extension of credit or the interest rate charged thereon.(b) In any prosecution under this section, if it is shown that all of the following factors were present in connection with the extension of credit in question, there is prima facie evidence that the extension of credit was extortionate, but this subsection is nonexclusive and in no way limits the effect or applicability of subsection (a):(1) The extension of credit was made at a rate of interest at least equal to that established for criminal usury in section 806.1(h) of this act. (2) At the time credit was extended, the debtor reasonably believed that either (A) one or more extensions of credit by the creditor had been collected or attempted to be collected by extortionate means, or the nonrepayment thereof had been punished by extortionate means, or(B) the creditor had a reputation for the use of extortionate means to collect extensions of credit or to punish the nonrepayment thereof.(3) Upon the making of the extension of credit, the total of the extensions of credit by the creditor to the debtor then outstanding, including any unpaid interest or similar charges, exceeded one hundred dollars ($100).(c) In any prosecution under this section, if evidence has been introduced tending to show the existence of the factor specified in subsection (b)(1) of this section, and direct evidence of the actual belief of the debtor as to the creditor's collection practices is not available, then for the purpose of showing the understanding of the debtor and the creditor at the time the extension of credit was made, the court may in its discretion allow evidence to be introduced tending to show the reputation as to collection practices of the creditor in any community at the time of the extension.1939, June 24, P.L. 872, § 806.2. Added 1972, Dec. 29, P.L. 1671, No. 358, § 1, imd. effective.