The legislation focusing on the online companies additionally would slash fees levied for payday, vehicle name along with other loans that are short-term.
It passed the House work and Commerce Committee 14-8. A similar bill, sponsored by state Sen. Mamie Locke, D-Hampton, should come ahead of the comparable Senate committee later on this thirty days.
The General Assembly has rejected efforts to chip away at the loopholes in existing rules and caps on interest rates вЂ” some of which translate to triple-digit interest rates for more than a decade.
The home billвЂ™s sponsor, Del. Lamont Bagby, D-Henrico, stated the measure would make sure treatment that is fair borrowers and lenders, and dismissed lobbyistsвЂ™ arguments that it would dry out credit.
вЂњAffordable payments, equitable treatment plan for borrowers and loan providers, extensive use of credit вЂ” and we wonвЂ™t be back if this passes,вЂќ stated Jay Speer, executive manager regarding the Virginia Poverty Law Center, that has campaigned for a long time for rules to guard borrowers from high-interest-rate little loans.