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City council with nothing to do

May 25, 2010 | federal legislation, industry | Comments (0)

That woudl be Staunton, Virginia.  From the story:

Now {Councilman} Elder is asking Virginia cities to support a new resolution demanding reform for all, what he calls, “predatory” lenders; not just payday loans. The proposal would cap consumer credit interest at 36 percent, including all fees. It would also extend lending laws that currently cover only military personnel to every consumer in the Commonwealth.

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The Community Financial Services Association of America, which represents the payday lending industry, issued a statement to NBC29. It reads, in part, that a rate cap “would result in the elimination of an affordable credit choice for consumers,” and “lenders could not cover the cost of originating a loan, let alone meeting employee payroll and benefits and other fixed business expenses.”

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