Payday lending charges; establishing maximum annual interest rate. (HB1799)

Introduced By

Del. John Cosgrove (R-Chesapeake) with support from co-patrons Del. Anne Crockett-Stark (R-Wytheville), Del. Glenn Oder (R-Newport News), Del. John O'Bannon (R-Richmond), Del. Tom Rust (R-Herndon), and Del. Lionell Spruill (D-Chesapeake)

Progress

√
 Introduced
☐
 Passed Committee
☐
 Passed House
☐
 Passed Senate
☐
 Signed by Governor
☐
 Became Law

Description

Payday lending charges. Establishes a maximum annual interest rate for payday loans of 36 percent. Currently, payday lenders may charge a fee of 15 percent of the loan proceeds advanced, and as a result the annual percentage rate of interest charged depends on the term of the loan. View Full Text »

Outcome

Bill Has Failed

History

  • 12/29/2006 Committee
  • 12/29/2006 Prefiled and ordered printed; offered 01/10/07 074724276
  • 12/29/2006 Referred to Committee on Commerce and Labor
  • 01/16/2007 Impact statement from SCC (HB1799)
  • 01/23/2007 Assigned C & L sub: Financial Institutions (Dudley)

Comments

Doug Smith, Virginia Interfaith Center writes:

This is an excellent move and fully in line where the faith community and many others through the VAPERL coalition have been headed. A 36% interest rate cap would put payday loans under the Consumer Finance Act, like all other loans. Delegate Cosgrove and Delegate McClellen are on the right track to take the right action and protect working families with this legislation.

Posted 78 months ago.
David Wright writes:

I'm a member of the faith community and I think this bill is a terrible idea. People have a fundamental right to enter into credit and borrowing arrangements with each other that is far older than Virginia and by the way that right extends not only to "working families" whatever that means but ALL families and individuals. Using the government to decide what interest rates are allowed instead of rates reflecting market risk will only limit the ablity of those most in need to obtain badly needed short-term loans.

Posted 77 months ago.
Tom writes:

Good family-friendly bill to protect the unsuspecting who are too often preyed upon by these loan sharks with their deceiving advertising.

Posted 77 months ago.
Paul writes:

Why should a few businesses with many locations in Virginia be allowed to assess usury charges against those who can least afford the rip-off?

Another example of our broke legislative system!

Don't give one Sub-Committee, Committee, or a few members the right to stop full legislative vote on an issue.

Better yet, Let the public vote on this issue and the Camera at Red Light problem.

Posted 77 months ago.