RICHMOND
A House of Delegates panel has pushed a hearing on the payday lending issue to Thursday.
The bill was delayed by the Commerce and Labor Committee, chaired by Del. Terry Kilgore, R-Gate City. Kilgore urged people on both sides of the contentious issue to resolve their differences by the Thursday sitdown, which is the committee's last meeting this session.
Kilgore said earlier today he is hopeful a compromise can be reached.
"Time is slowly ticking away," Kilgore said.
The sponsor of the bill, Sen. Phillip Puckett, D-Russell County, said today that prospects of a compromise look “bleak.” Parties involved in the negotiations have split on how many days should be allowed between the time borrowers can take out loans, for example, Puckett said.
“We’re close, we’re very close,” said Puckett, who sponsored SB588. “But whether we can get there, we’ll have to see.”
If legislators don’t reach a compromise by the time the House of Delegates Commerce and Labor committee meets for the last time Thursday, the reform efforts will likely die for the year.
Senate House Majority Leader Richard Saslaw, who chairs the Senate Commerce and Labor committee, said Monday he was leaning against appointing conferees from the houses to work out an agreement.
This is the second year lawmakers have introduced legislation to reform the industry.
Earlier in the session, the House and Senate passed their own payday lending reform bills.
HB12, sponsored by Del. G. Glenn Oder, R-Newport News, would require lenders to check an Internet database of clients before issuing loans; limit borrowers to one loan at a time; place a 36 percent interest rate cap on loans; extend the loan repayment period; and limit borrowers to five loans annually.
Puckett’s bill is SB588. It would restrict borrowers in default on one loan from getting a second one until the original debt is paid and prevent new payday lending establishments from opening within 1½ miles of an existing store.
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Not smart enough to vote
With all due respect, unless you're being taken advantage of and misled by the payday lender, if you pay $30 for a 2 week $200 loan you're not someone I want voting on the laws that govern my family and I. That is assuming you really did borrow the money, and aren't an employee of the payday industry trying to pose as a hardworking person who needs the 500% APR loan. Any bank or crdit union will set you up with a credit card, EVEN with bad credit, that allow you to charge money and pay it back within 30 days with ZERO interest; at least $200 worth of credit. Old sayings still have a lot of truth: "A fool and his money will soon be parted" by the predatory payday lenders.
Let us vote
Why doesn't the government let the consumers vote on this, instead of having a bunch of suits vote on something they have never had to use. If the customers of the payday stores voted, it would be a landslide to keep it the way it is. Here is the decision they would have to make, keep the stores open and exactly the way they are, or move the percentage rate to 36%, which sounds good, until they are told that the store would have to shut down. Along with moving the percentage rate, the customer would have restrictions on when they can get a loan and how many they can get. Hmmm... which one would they choose? This is so simple, why is the government trying to make decisions that we don't want for us? What makes them the expert? Is it the trillions in debt that they have acquired? Or the fact that none of them have ever lived paycheck to paycheck or ever needed a payday advance, unless it is to help make a payment on their Mercedes. The government can't even replace a toilet for less than 10 grand, why are we trusting them with our measly $300 loans? The last loan I got was for $200 and I paid $30 for it. I am much better equipped to make my $30 decisions than the government. They sho
Payday loans are abuse of the poor and elderly
The 1000% APR payday lending loansharks want us to believe the borrowers are financially responsible; not true. If it were, they wouldn't need to pay 300 to 1000% apr. They'd use their savings, or debit card. Or their credit card which could be paid back at 0% interest in 30 days instead of 1000% apr to the predatory payday lenders. Payday lenders sue their customers and routinely use absive collection tactics like threatening criminal prosecution a "check" that bounces even though the predatory lender knows a "check" given to payday lender is NO a check for legal purposes but an IOU, thus no bad check law can be applied. So this religious fanatic will continue to preach the evil of payday lenders that prey on the elderly, poor and our neighbors. Why doesn't anyone also ask how can it be constitutional to give protection to military against payday lenders and not give that same protection to all our citizens?
Payday Lending should be reformed but not banned
Payday lending is a need that is used by people who are educated and have incomes on the avg of 25,000 - 55,000 - bottom line is most of the people who use payday loans is responsible people who pay back on time and use it for short term, some people have used payday lending and have gone bad on there loan. Like any thing else like credit cards - car loans-medical bills-or any other bill people take out this debt and can not pay it end up in collections or court for a judgement. If you don't use payday lending then don't pass em buy but there must be a need for this product if we have many stores in the area. So to the religious fanatics who need to go back to there church and preach gods word instead of getting involved in politics and to the fanatic groups whose members have high incomes who have not had to borrow money because of unexpected expenses quit try to fight for virginians who need this service.
Abuse of our Citizens
Drugs, prostitution, drunk driving, etc., are all acts that the adults participating in them do so as alleged free adults. However, society and wise people and politicians create laws to protect the good in our community from the bad. Eliminating Payday loans is no different. Wolves preying on the tough times the poor, the young, the military, the single mom, or disabled dad encounter, and make tough times even tougher by extolling interest payments in excess of 500 PERCENT APR so they can denegrade our neighborhoods with their shops, similar to the old head shops of years past, in every neighborhood, bringing a decline to the quality of the strip malls. There is no good from payday loans, except to those exploiting our citizens and the law makers (and their lobbists law firm employers) who are benefitting from the exploitation of our neighbors. I've seen the argument that a payday loan is cheaper than a bounced check fee, the only problem with that logic is that most payday loan borrowers ALSO bounce their first check with the payday company. If they had the money in the account, they wouldn't write the draft (lenders try and threaten it was a check).
Just a Matter of Time
As I see it it's just a matte of time before payday loans become unworkable anyway. Eventually, because the federal government placed a cap on the interest rate these civilain companies can charge military personnel, someone will sue under the 14th Amendment that they're being treated as a separate class because there's no APR cap on non-military personnel.
Personally I'm not sure the government can justify allowing two separate charges. I know the payday loan company is licensed by the state but the check that covers the loan is most likely a FDIC insured institution. Therefore it seems that the Feds do have the ability to reach into the state's affairs.
I agree
Personal responsibility comes to mind here. If you're borrowing the $500.00 knowing you will not be able to pay it back, who's fault is it? They give money to people that banks usually wouldn't even give the time of day to. Just like getting credit with bad credit, you pay higher interst rates. But borrowing money knowing full well you can't pay it back, is like writing a check you know will bounce. When hard times arise and you have no food, gas, electricity, water or just daily life essentials, these places are very tempting to people. Have food today, worry about the money tomorrow. Makes perfect sense. But, It's not the lenders fault. Nor should the people who don't use them in that manner be restricted to use them. It's called life. You live and learn the best way you can. Sometimes hitting some hard bumps. Credit card companies are no different. Their APR's for people with balances can send some to bankruptcy.
RE: only 2 weeks to pay back
Sorry, that's where the personal responsibility part of my statement comes in. Why take out a loan that is due in 2 weeks if you know you can't pay it back?
jmo
????
The bad deal is the amount of time that you have to pay it in, which is like 2 weeks. Not to mention that you have to pay it in full, and who in their right mind wants to pay $75 on a $500 loan, yet I did time and time again. That's where the APR crap comes in. You can't compare 15% in an entire year to 15% to two weeks. That's the type of thinking that gets one caught up in the vicious cyclec of payday loans. Good luck with that ...
Bad deal?
Borrowing $500 and paying 15% interest on the loan doesn't seem like a bad deal to me. (Spare me the APR crap...If I pay my Visa in full when it's due, I pay zero interest, regardless of the APR.)
It's not the loans, it's the irresponsible behavior of some who use (abuse) them.
jmo
Cool
Cool. I keep seeing these banner ads here on Pilot regarding payday loans, and when you follow it there is some form letter that they want you to fill out to help them take more money from the lower class people who probably don't understand how bad of a deal payday loans are. So I used their own form letter system to fight their cause.