According to The Virginian Pilot, a compromise has been reached on payday lending. The missing piece: a cap on interest rates. (I find it curious that Del. Terry Kilgore says that “there was not enough support to pass an annual cap on loans.” SB12 passed the House 91-7! What votes is he missing?)
You know, if the payday lenders didn’t make so much money, they wouldn’t have the resources to make all those campaign contributions.
UPDATE: The article linked above has been updated by the Pilot to reflect that the bill does indeed include a 36% cap. Good for them!
There is a 36% cap.
Posted by not Glen Croshaw | Monday, March 3, 2008, 8:50 pmThe Pilot is wrong, then?
Posted by vjp | Monday, March 3, 2008, 8:57 pm“The compromise limits borrowers to one loan at a time, five loans in 180 days and sets a 36 percent cap on interest charges.”
This is the quote in the article you linked so the premise of your entire post is incorrect, like most of those you have on payday advances.
Posted by Kate | Tuesday, March 4, 2008, 9:06 amActually, Kate – the article has been updated since yesterday when it did NOT reflect that information. That is why I asked NGC whether the Pilot was wrong. Note that the quote I have above no longer even appears in the article.
As for my opinion on payday advances – well, just as you are entitled to yours, I am entitled to mine.
Posted by vjp | Tuesday, March 4, 2008, 9:11 amFeh. More stupid government nannyism.
Posted by Brian | Tuesday, March 4, 2008, 1:43 pmKen Melvin is unimpressed with the “compromise” worked out.
Posted by BB | Wednesday, March 5, 2008, 5:57 am