Virginia Payday Loan Borrowers Take Out Fewer Advances
By Paul RizzoPayday Loan Writer
For the first time since payday advance loans were legalized in Virginia in 2002, the number of Virginians taking the loans out shrunk - even as the number of stores continues to grow.
The state released the official statistics on Virginia’s payday lending industry in 2006.
The number of people taking out at least 13 personal loans during the year also continues to grow, rising to 289,767 in 2006. On average, Virginians using the service took out 8.3 loans. Lawsuits against people who couldn’t pay soared by 38 percent, reaching 12,486, up from 9,039 in 2005.
There were $1.3 billion in payday loans in 2006, up from $1.2 billion. Although there were slightly fewer borrowers, they are taking out a greater number of loans at a higher dollar amount.
The Virginia General Assembly debated a range of new regulations for payday lenders this year, but ultimately did nothing.
