House Passes Virginia Payday Loan Lending Reforms
The House of Delegates passed a package of payday advance lending reforms today, even as opponents argued it still doesn’t do enough to keep borrowers from falling into a cycle of debt.
The bill would create a statewide database to keep track of Virginia payday loans and limit borrowers to three at one time. Individuals would have to wait 24 hours before taking out a loan after paying off another, and overextended borrowers could enter into 60-day extended payment plans, during which time they could not take out another loan.
The Senate must agree to changes made in the House to further protect instant cash loan borrowers before the bill can be sent to the governor.
Governor Kaine wants to limit the annual interest rate lenders can charge. Supporters have said caps would put the state’s nearly 800 payday lending stores out of business.