Title lending clampdown in Virginia
January 8, 2010 | Virginia, industry | Comments (1)From today’s Virginian Pilot:
Virginia’s State Corporation Commission tightened its regulation of high-interest, short-term credit by barring payday lenders from making car-title loans to individuals who already have a title loan outstanding.
In addition, payday lenders that extend a title loan must file a lien on the borrower’s vehicle with the Department of Motor Vehicles, the SCC said in an order issued Dec. 29. The new rules take effect Feb. 1.
Faced with changes last year that restricted the scope of their lending, some payday lenders in Virginia began promoting open-end loans and lines of credit as car-title loans.
Comments»
Does it really make sense to secure a lien, every time, for loans under $500? Nope.