Posted on 07 May 2008. Tags: Alexandria, Alexandria Gazette, Justin Wilson, Virginia
From the Alexandria Gazette:
THE NEW TAXES and fees created about $18 million in new revenue, and Hartmann’s cost-saving measures created about $2.3 million in spending reductions. Yet one potential new source of revenue was delayed Monday night. Councilman Justin Wilson’s proposal to raise taxes on payday lenders and car-title lenders, which he called “predatory lending institutions,” was put on hold after several industry representatives publicly threatened a lawsuit if the City Council decides to move forward with the plan. Although council members did not vote on this particular ordinance last night, the budget includes the new revenue from the tax and spending line items include funding for the financial literacy programs that Wilson’s plan suggested.
“We don’t want to get involved in a lengthy legal fight that will swallow up all the potential new revenues,” said Wilson. “So rather than saying ‘damn the torpedoes, full speed ahead’ we are going to see if we can have a meeting of the minds with the industry.”
Posted in Alexandria Gazette, industry, local issues, media coverage, regulation, states, Virginia
Posted on 25 April 2008. Tags: Alexandria, funny, local issues, Virginia
Funny blurb from the local Alexandria, Virginia newspaper:
When You Care Enough
The threat of a lawsuit is a time-honored motivational tool, and one that is a familiar weapon at City Hall. Since Councilman Justin Wilson announced a proposal to raise taxes on payday lenders and car-title lenders two payday-lending companies have sent lawyers to publicly threaten a lawsuit during two different public hearings. Wilson’s plan would hit all three payday lenders in Alexandria, but the vast majority of the new revenue would come from LoanMax, a car-title lending company located at the intersection of at the corner of Mount Vernon Avenue and West Glebe Road. The payday-lending companies sent several lawyers, but LoanMax hired a celebrity.
“All lenders don’t treat everybody the same,” said former City Councilman Lonnie Rich, representing LoanMax before the elected officials. “Everybody can’t walk down to Burke and Herbert to get a loan.”
Posted in industry, local issues, regulation, states, Virginia
Posted on 21 April 2008. Tags: Alexandria, local issues, Rob Krupicka, Washington Post
The Alexandria, VA city council wants to impose a steep new tax on payday lenders according to this Washington Post article. Advance America, the nation’s largest payday lending company is threatening to sue the city if it takes this step. From the article:
Under the Alexandria proposal, payday and car-title lenders would face a business license tax of 58 cents for each $100 in gross receipts, up from 35 cents for each $100 of gross receipts, which is the general rate for financial services firms. The tax would generate an estimated $13,000 annually, which the city wants to devote to consumer financial education.
“I think it is a good symbolic gesture,” said Alexandria council member Rob Krupicka (D), but he said he is worried about the potential cost of litigation by payday lenders. “I don’t want to go down the path where we are paying more in legal fees than we are generating in revenue,” he said.
Posted in industry, local issues, media coverage, regulation, states, Virginia, Washington Post
