Crackdown on high-interest loans — blocked for ten years in Richmond — clears a vital first hurdle

Crackdown on high-interest loans — blocked for ten years in Richmond — clears a vital first hurdle

RICHMOND — A bill that bans the type of online loans that hit Virginians with interest rates often surpassing 900% passed a vital hurdle that is first the General Assembly on Thursday.

The legislation focusing on the web businesses additionally would slash costs levied for payday, vehicle name along with other short-term loans.

It passed the homely house work and Commerce Committee 14-8. a bill that is similar sponsored by state Sen. Mamie Locke, D-Hampton, should come ahead of the comparable Senate committee later on this thirty days.

For over ten years, the typical Assembly has refused efforts to chip away in the loopholes in current rules and caps on interest prices — a few of which translate to triple-digit rates of interest. Continue reading “Crackdown on high-interest loans — blocked for ten years in Richmond — clears a vital first hurdle”