Weekly update of my legislative agenda issue.
Big news on the payday lending issue came yesterday. At a morning press conference, it was announced that legislators had reached a compromise on this. (Not just GOP legislators, Brian.)
Key legislators from both parties in the House of Delegates have signed onto a compromise to regulate payday lenders that is intended to prevent unwary consumers from getting trapped into debt.
Newport News Republican Glen Oder will carry the bill, a revised version of his HB12, which will be heard by the House Commerce and Labor committee Tuesday. Key components of the bill:
- No more than 5 loans per year
- No more than one loan outstanding at a time
- A 24-hour cooling off period between loans
- Longer repayment term
- Lenders can charge 10% of the loan amount plus $5 verification fee, with interest capped at 36%
- Can only borrow up to $500
There will be a database to track these loans, something that has been the subject of many of the bills on payday lending this year. No word on how the database will be paid for. Several of the earlier bills charged the borrower a fee for this.
The Legislative Black Caucus made payday lending one of it legislative priorities and was also present at the press conference. While this bill isn’t perfect, it is a step in the right direction.
Technorati Tags: Payday Lending
3 Comments
While this bill isn’t perfect, it is a step in the right direction.
Vivian,
Does that mean that you won’t be satisfied with this bill? It seems like a substantial change to me.
Perfect would be a repeal of the statute that allowed payday lending in the first place.
The government does not ALLOW actions. It makes actions ILLEGAL. Everything not illegal is legal. You want the government to make payday lending illegal again.
If you do not trust people to handle their own affairs, with all of the details plainly before them, how can you trust them to vote?
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[...] Local, Payday lending, Politics, Virginia by vjp on February 11th, 2008 HB12, the revised bill I mentioned last week, passed this House this morning on a 91-7 vote. Kudos to the majority of Delegates who [...]
[...] 2008 This Sunday’s On the Record will feature representatives both for and against the proposed legislation on payday lending. Joining host Joel Rubin will be Jamie Fulmer from payday lender Advance America [...]