Wednesday, October 10, 2007

Waynesboro Approves Payday Loan Referendum

By Paul Rizzo
Payday Loan Writer

Waynesboro has joined Staunton and Harrisonburg in the fight to cap payday loans, and the city also approved a referendum pamphlet at its Tuesday night meeting.

The Waynesboro City Council passed a resolution Tuesday night to ask the Virginia General Assembly to cap payday lending rates at 36 percent.

Staunton and Harrisonburg passed similar resolutions in recent weeks. Payday loans are short-term cash advance loans offered at high interest rates, mainly to people who need some money before their next pay day.

The resolution says the high interest rates target vulnerable people.

The city council is also moving forward to inform Waynesboro voters about what will be on the referendum ballot next month.

Residents will be voting on several projects in the city. The city council approved a pamphlet Tuesday night that will explain each project to the voters.

The council will use the general fund to pay for the printing and distribution of the no fax payday loan pamphlets, which will be given out in two weeks.

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