In addition, We will introduce legislation placing a 36 per cent rate of interest cap on customer finance loans.

In addition, We will introduce legislation placing a 36 per cent rate of interest cap on customer finance loans.

Predatory financing that imposes abusive terms and interest that is high on borrowers irrespective of capacity to spend is just a nagging issue in Virginia, the 36th Senate District and particularly into the U.S. 1 corridor. Predatory financing, imposing abusive terms and interest that is high on borrowers aside from capacity to spend, is a nagging issue in Virginia, the 36th Senate District and particularly into the U.S. 1 corridor.

I shall introduce legislation in January to finish these abusive techniques.

There are numerous types of high interest or predatory loans. First, pay day loans are loans which are guaranteed against a consumer’s paycheck. In ’09, the Virginia General Assembly enacted restrictions on pay day loans which caused the training to cut back to about six places close to the 36th District.

In 2010-11, a number of the companies that are same returning to Richmond and persuaded the legislature to authorize automobile name loans. Continue reading « In addition, We will introduce legislation placing a 36 per cent rate of interest cap on customer finance loans. »