House leaders propose payday lending restrictions

Posted to: News Virginia

By Aaron Applegate
The Virginian-Pilot
© February 4, 2008

RICHMOND – House leaders announced Monday details of a plan to reform the state’s payday lending industry, a proposal that includes a 36-percent interest rate cap, which has been opposed by industry officials.

The amendment to HB12 would also limit the number of loans a person could get to five a year and cap loan fees at 10 percent. Currently, the fee is 15 percent.

The bill, sponsored by Del. Terry G. Kilgore, R-Gate City, is expected to be taken up by the House Commerce and Labor committee Tuesday.

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leave it alone

Submitted by grant on Sat, 03/01/2008 at 3:52 pm.

Oregon already dropped the percentage rate and the lenders left the state. Leave the lenders alone and hold the borrowers responsible for their own decisions! If I was to rob a bank, you wouldn't blame the bank, you would blame me, so why are we blaming the payday lenders for the borrower's decisions? There are many of us who know how to use payday loans responsibly, leave them alone so that we can continue to have this service. Or come up with another option. Regardless, stop pointing the finger at the lenders when it is the borrower's responsibility to make good decisions!

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