Virginia Payday Loan Alternatives Discussed
Payday advance lending opponents in Virginia have gotten more organized this year - and the new group spearheading the fight plans to keep the issue at the forefront through this fall’s elections.
Virginians Against Payday Lending reiterated at its meeting Tuesday in Newport News that it doesn’t plan on compromising on passing legislation that would cap the loans’ interest rate at 36 percent.
The cash loan lenders, which charge almost 400 percent annual interest, have said 36 percent would put them out of business.
The group opposing the personal loans believes it has a good shot this year because it is better-organized and has gained momentum. A group of leaders from different faiths and political persuasions, including the Family Foundation of Virginia and the Rev. Jonathan Falwell, are joining the fight.
To counter a payday loan industry argument that there are no alternatives, the group is working with credit unions to develop loan programs that cater to payday loan customers.