HARRISBURG, Pa. — Pennsylvania has sued Advance America, the nation's largest payday lending chain to shut down what the state has alleged is the chain's latest attempt to get around a crackdown by federal banking regulators on banks funding payday lending operations.

The suit charges that Advance America has used a corporation based in Delaware to offer something called the "Choice Line of Credit" to consumers in Pennsylvania in June. The suit said that Advance America charges a monthly participation fee of $149.95 per month and that this allows consumers to borrow up to $500 per month at an APR of 5.98% and with a minimum monthly payment of $20.

"Under this outrageous product, a person who borrows $500 and makes minimum monthly payments ends up paying back more than $4,000 over about two years," said Pennsylvania Governor Ed Rendell in a prepared statement. "Advance America may not be making payday loans in Pennsylvania anymore, but they are still trying to take advantage of hard-working, hard-pressed families," he added.