Virginia Lawmakers Limit Payday Loan Firms’ Ability to Garnish Military Wages

Historical archive, first published 2005 — payday-lending laws and rates have changed since. Preserved for the record.

In Virginia, a new state law, effective today, offers military service members and their family some protection from payday loan lenders. The law prevents short-term no fax cash loan companies from garnisheeing military wages and prohibits them from collecting against deployed service members or their families.

In addition the law prohibits lenders from contacting a military member’s commanding officer to collect on a loan. It requires the lender to be bound by repayment agreements negotiated through military counselors or another third party credit adviser.

And if a base commander declares a payday loan center off limits, lenders are barred from making loans to military personnel.