Soon Online Payday Loans May be Only Option in Virginia

Payday Lenders in Virginia face regulations

We may see an uptick in the number of online payday loans borrowed in Virginia if the legislature runs payday lenders out of the state.

It looks like Virginia might be heading in the same direction as New Hampshire, where Advance America has announced it will close its 24 stores.

Virginia legislation

Already Virginia has passed laws that extend repayment periods and limit the number of sequential loans a borrower can get. Last month a senator introduced a bill that would impose a 36 percent interest rate cap on car title loans. The bill would also create a mandatory 25-day grace period during which the companies could charge no interest or fees.

Another bill would forbid payday lenders from offering open-end lines of credit.

No payday loan interest cap … yet

Senator Mark Herring introduced the bill that would cap interest rates on car title loans.

Though the first bill would cap interest rates on car title loans, it doesn’t apply to payday lenders. However, if the Virginia government does pass a bill that caps interest rates on payday lenders, it will likely drive them out of the state. People will still be able to get online payday loans, probably, as web-based payday lenders don’t have such high operating costs. ... click here to read the rest of the article titled "Soon Online Payday Loans May be Only Option in Virginia"