HB1404: Payday lending charges; establishes maximum annual interest rate.

Offered January 10, 2008
A BILL to amend and reenact § 6.1-460 of the Code of Virginia, relating to interest on payday loans.
Patron-- Jones, D.C.

Committee Referral Pending

Be it enacted by the General Assembly of Virginia:

1.  That § 6.1-460 of the Code of Virginia is amended and reenacted as follows:

§ 6.1-460. Rate of interest.

A licensee may charge, as a fee for each loan, an amount not to exceed fifteen percent of the amount of the loan proceeds advanced to shall not cause the borrower to pay interest on a payday loan at a rate exceeding 36 percent annually. For purposes of this section, the term "interest" includes all fees and amounts payable directly or indirectly by the borrower as a condition of, incident to, attendant to, or arising out of a payday loan.