Virginia Partnership to Encourage Responsible Lending

Driving Virginians into a Ditch of Debt: The Facts About Car Title Lending in the Commonwealth

Thu, 16 Jul 2009 13:35:00 EST

There is no good reason why any lender should be permitted to charge 300% interest on a secured loan. No borrower that wasn�t desperate or tricked into it would pay it, no scrupulous lender would demand it, and no unscrupulous lender should be allowed to exploit a borrower's circumstances to charge it.

Car Title Loans and Another Assembly Study

Thu, 16 Jul 2009 10:23:00 EST

The most obvious solution to bring the predatory loan practice under control would be to cap the interest rate on the loans at 36 percent annually. But the legislators put off the issue for further study this summer.

Predatory lending made easy

Tue, 14 Jul 2009 09:55:00 EST

You see, car title loans are still legal in Virginia. And so are open-ended consumer loans. And get this: There is no interest rate cap on either.

Eligible Virginia Employees Will Get $100-$500 Loans

Mon, 13 Jul 2009 12:11:00 EST

"This program will allow our state employees to receive small loans without having to go to predatory lenders," Governor Kaine said. "If the Commonwealth can offer this kind of program, other large employers may consider similar initiatives of their own."

Va. to offer short-term lending program for state employees

Mon, 13 Jul 2009 09:47:00 EST

"It's a way to help out people who need money in a hurry so they don't have to go to outside lenders," said Kaine press secretary Gordon Hickey. The state has about 100,000 employees.

Phantom Demand: Short-term due date generates need for repeat payday loans, accounting for 76% of total volume

Thu, 09 Jul 2009 16:00:00 EST

Repeat borrowing of what is marketed as a short-term loan of a few hundred dollars has long been documented, but this report verifies for the first time how quickly most payday lending customers must turn around and re-borrow after paying off their previous loan.

Lawmakers need to get tough on payday lenders

Wed, 08 Jul 2009 12:34:56 EST

But now payday lenders are getting around the new law by offering other high-interest loans, such as car title loans. Borrowers hand over the title to their vehicle to secure a loan for up to half the car's value. If they fall behind, the lender can take the car.

Lawmakers target car title loans

Mon, 29 Jun 2009 15:42:00 EST

Car title lenders operate under the state's open-end credit law, which allows them to impose whatever loans terms they want as long they do not charge anything during the first 25 days.

Reforms Take a Toll on State Payday Firms

Wed, 24 Jun 2009 15:23:00 EST

The General Assembly has nibbled away at the payday loans in recent years, but has failed to take the step that would put them on the same playing field with other financial institutions that loan money on a short-term basis to those who need it. That step, of course, is the 36 percent interest rate cap on an annual basis -- the same cap that applies to other lending institutions.

With new Va. reforms, payday loans plummet

Mon, 22 Jun 2009 19:00:00 EST

"It's definitely good news and bad news," said James W. Speer, executive director of the Virginia Poverty Law Center. "The good news is that there are less payday loans. The bad news is that they just shifted to cartitle lending."

A Borrower's Guide to Virginia's Payday Loan Law - Your Rights

Tue, 16 Jun 2009 10:28:00 EST

Ten important facts to keep in mind if you have taken out a payday loan or are considering it.

Loan-Shark Lenders Have Date With Hangman

Thu, 04 Jun 2009 11:34:00 EST

Now, maybe, borrowers might catch a break. There is serious talk in Congress and the White House about creating a Financial Products Safety Commission, charged with protecting consumers and the country from the depredations of irresponsible lending.

Road to Ruin: Online Lenders Fight Regulation

Tue, 02 Jun 2009 16:28:00 EST

Recently some states have passed laws limiting interest rates, but there is one marketplace that knows no borders -- the Internet.

Our view on consumer protection: Beyond credit card reform

Wed, 27 May 2009 14:06:00 EST

The deeper failure is the lack of any federal agency looking out for consumers' interest across a wide array of financial products, from credit cards to "payday loans" to mortgages.

Payday Loans Vicious Cycle: Desperate Americans Turn to Advance America

Tue, 26 May 2009 11:05:00 EST

"It is tragic that consumers who struggle to make ends meet are paying some of the highest interest rates in the market," said Fox, "and that that's enriching the payday loan industry at the expense of communities that need every penny consumers make."

Paid Bloggers Promoting Payday Lending

Thu, 21 May 2009 13:42:00 EST

According to the Huffington Post, even a spokesperson for the payday lending industry's own trade group refers to online lending as the "Wild West." Not exactly a ringing endorsement.

36 Percent Is High Enough

Mon, 18 May 2009 12:00:00 EST

Senator Richard Durbin, Democrat of Illinois, has introduced a sound bill -- called the Protecting Consumers From Unreasonable Credit Rates Act -- that would rein in excessive and unfair charges for credit card and other loans. It limits the cost of consumer credit to 36 percent.

Democratic gubernatorial hopefuls feud over payday lending in Va.

Sun, 17 May 2009 20:10:00 EST

Each Democratic candidate has pledged to go further -- to completely push out payday lenders -- if elected to the executive mansion in November. The nominee will be decided by a June 9 primary.

Democratic gubernatorial hopefuls feud over payday lending in Va.

Sun, 17 May 2009 20:10:00 EST

Each Democratic candidate has pledged to go further -- to completely push out payday lenders -- if elected to the executive mansion in November. The nominee will be decided by a June 9 primary.

Selective Interpretation? Top Credit Card Issuers Appear to Follow Own Rules.

Thu, 14 May 2009 09:47:00 EST

In the last six months, every one of the top eight has increased interest rates on existing balances for many of their accountholder on an "any time, any reason" basis, not counting penalty rate increases.

Va. regulations chasing payday lenders away

Wed, 06 May 2009 09:45:00 EST

Good riddance, say payday-loan critics such as Dana Wiggins of the Virginia Poverty Law Center. She says such loans trap consumers in a cycle of debt: "People become dependent on them."

As restrictions hit payday loans, lenders change tactics

Sun, 03 May 2009 12:00:00 EST

Partly because of the fees, "you can't figure out what you paid and what you still owe," said Jay Speer, executive director of the Virginia Poverty Law Center in Richmond and a critic of payday and car-title lending. Borrowers, he said, often leave assuming that they owe 25 percent a year on the loans when they owe 25 percent a month.

Again, payday lenders roll Virginia's legislature

Sat, 02 May 2009 12:00:00 EST

A provision in this year's bill is virtually an invitation to companies to peddle both types of predatory loans. Lawmakers are loath to put limits on car title loans because companies that specialize in them have been far more generous campaign contributors than their payday cousins.

Racecar Repossessed by Car Title Lender

Fri, 01 May 2009 13:23:00 EST

"We let them put their name on the car but that didn't satisfy them so we will be voluntarily surrendering the car today in Richmond--we don't want to embarrass NASCAR with a repossession on the racetrack."

Major payday lender is leaving Virginia

Thu, 23 Apr 2009 11:53:00 EST

"This industry refuses to be regulated in any way," said Jennifer R. Johnson, senior legislative counsel in the Washington office of the Center for Responsible Lending.

Debt Settlers Offer Promises but Little Help

Mon, 20 Apr 2009 09:54:00 EST

Consumers who turn to these companies sometimes get help from them, personal finance experts say, but that is not the typical experience. More often, they say, a settlement company collects a large fee, often 15 percent of the total debt, and accomplishes little or nothing on the consumer's behalf.

Legislators back Kaine in quicker crackdown on payday lenders

Thu, 09 Apr 2009 09:54:00 EST

The new legislation prevents lenders from getting around 2008 rules on payday loans --specifically, caps on fees and the number of loans taken by Virginians -- by offering so-called open-ended loans that carry sky's-the-limit interest.

The Sad and Scandalous Comeback of Payday Lenders

Wed, 08 Apr 2009 12:25:00 EST

It's hard to argue in favor of any industry that charges almost 400 percent interest and traps consumers with additional fees and repeated loans. But you can always count on the payday lending industry to offer outrages even beyond that, which makes the dishonesty of sudden apologists like Gutierrez even more breathtaking.

Gubernatorial hopeful McAuliffe calls for a payday-lending ban; other Democrats follow suit

Fri, 03 Apr 2009 12:03:00 EST

McAuliffe's two foes in the June 9 primary echoed his proposal, though both Sen. R. Creigh Deeds of Bath County and former Del. Brian J. Moran of Alexandria voted in 2002 to open Virginia to payday lenders.

Car-Title Lenders Dodge Regulations

Tue, 10 Mar 2009 09:35:00 EST

"Right now car-title lenders are completely unrestricted and unregulated," said Jay Speer, executive director of the Virginia Poverty Law Center. "There's no state agency that licenses them or watches over what they're doing."

Virginia Check 'n Go Locations Closing?

Mon, 09 Mar 2009 15:46:00 EST

With the closing of Check 'n Go, there is hope that Virginians will not have to resort to payday loans in order to make ends meet and can instead search for viable alternatives to this predatory practice.

Solutions, but not from GA

Fri, 06 Mar 2009 18:00:00 EST

There's always next year. And the hope that lawmakers won't allow themselves to be distracted from the task they keep dodging: protecting the most financially vulnerable borrowers and imposing reasonable, common-sense restrictions on the lenders that exploit them.

Lawmakers to Reconsider Yo-Yo Car Sales

Mon, 23 Feb 2009 12:01:00 EST

"The dealer will have put the consumer in the car, and the consumer has been driving the car. The dealer doesn't want the car back if he can help it; the dealer just wants to make more money."

Predatory lenders host annual hoodwink

Tue, 17 Feb 2009 10:52:00 EST

There's little hope that lawmakers will be any more diligent over the coming year as they begin their study, but perhaps they should consider asking lobbyists to wear their client logos on their lapels.

Take action to help end predatory lending

Wed, 11 Feb 2009 12:00:00 EST

Without our vehicles, those of us who become victims of car title loans may lose our jobs because of missed work or may have to shred Plan B as we find we have no means to drive to an interview for a new job.

Stop predatory loans to halt the cycle of debt

Sun, 08 Feb 2009 12:00:00 EST

No car means no trips to the grocery store, no way to get to work, and no way to pay off the car-title loan she took out in the first place.

Protest Spotlights Payday Loan 'Loopholes'

Fri, 06 Feb 2009 17:45:00 EST

"It's outrageous and egregious," said protester Laura Lockey, Harrisonburg resident and chaplain for the Episcopal Campus Ministry. "Car title loans are exploitive. My faith tells me I'm supposed to protect those who are poor and not exploit those who are poor."

Va. car title lending bill killed

Thu, 05 Feb 2009 18:00:00 EST

"By not dealing with it they are in fact endorsing it," Speer said. "These places are set up on the street corner and people think that the government has looked at this and said it's OK, so that gives them a level of comfort and it gets more people into the loans."

Cast out the predators

Sun, 01 Feb 2009 12:00:00 EST

Lawmakers need to do more. They need to offer Virginians the protection that they might be too desperate to seek for themselves.