Payday Loan Act; requires SCC to contract with one or more parties to develop, etc. database. (HB176)

Introduced By

Del. Onzlee Ware (D-Roanoke)

Progress

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

Description

Payday Loan Act; database. Requires the State Corporation Commission, by January 1, 2009, to certify and contract with one or more third parties to develop, implement, and maintain an Internet-accessible database, and requires payday lenders to query the database prior to making any loan to determine whether an applicant is eligible for the loan. Fifty cents may be charged to defray the costs of using the database. The proceeds from the fees shall be used only for the payment of the expenses of the administration of the Payday Loan Act and of the performance of other functions of the Bureau of Financial Institutions. Read the Bill »

Status

02/05/2008: Merged into HB12

History

DateAction
12/26/2007Committee
12/26/2007Prefiled and ordered printed; offered 01/09/08 081051776
12/26/2007Referred to Committee on Commerce and Labor
01/24/2008Impact statement from SCC (HB176)
02/05/2008Incorporated by Commerce and Labor (HB12-Oder)

Comments

Virginia Interfaith Center, tracking this bill in Photosynthesis, notes:

So rather than 780% in interest on a one week $100 payday loan, Delegate Ware wants to increase that to 808.21% APR. I think that Delegate Ware seems to be going to the wrong way - we want an interest rate UNDER three digits, not reaching four. This is a classic example of why Virginia should just cap the rates at 36%.

Doug Smith writes:

So rather than 780% in interest on a one week $100 payday loan, Delegate Ware wants to increase that to 808.21% APR.