VA law takes effect
January 2, 2009 | VAs Against Payday Loans, Virginia, industry, media coverage, regulation, states | Comments (0)Lots of stories like this one over the last two days:
The new law limits borrowers to one loan at a time and extends the time they have to repay it. It also creates a database to track who’s borrowing, how much they borrow, and when.
“It was really one of the more high-profile issues during the past several sessions of the General Assembly,” said State Senator Mark Obenshain.
However, lenders are already trying to get around the new law by offering open-end credit products. Those are an unregulated type of loan, that allows lenders to charge whatever they want as long as they don’t charge anything for the first 25 days.
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