Governor Will Make Changes to Virginia Payday Advance Bill
By Paul RizzoPayday Loan Writer
Governor Tim Kaine said today he would make “significant changes” to a package of Virginia payday loan lending industry reforms if the bill comes to him.
The House passed the bill last week. Now the Senate must either agree to changes made in the House, sending the bill to Kaine, or reject the amendments - forcing negotiations between House and Senate members.
Kaine told reporters that he would “make some significant changes to that bill.”
The measure would create a statewide database to track no fax payday loans and limit borrowers to three at one time. Borrowers would have to wait 24 hours before taking out a loan after paying off another, and those who’ve taken out four consecutive loans could enter into a 60-day extended payment plan, during which time they could not take out another loan.
The House version requires payday advance loan lenders to automatically offer the extended payment plan to borrowers who had two other loans within the past year.
Congress capped the annual interest rate on payday loans to military personnel at 36 percent. Kaine says there shouldn’t be two different interest rates for fast cash loans in Virginia.
