Crackdown on high-interest loans clears a crucial hurdle that is first

Crackdown on high-interest loans clears a crucial hurdle that is first

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

The legislation focusing on the web companies additionally would slash costs levied for payday, automobile name as well as other loans that are short-term.

It passed the home 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 longer than 10 years, the typical Assembly has refused efforts to chip away in the loopholes in current guidelines and caps on interest prices — several of which translate to triple-digit interest levels.

The home bill’s sponsor, Del. Lamont Bagby, D-Henrico, stated the measure would make sure reasonable treatment plan for borrowers and loan providers, and dismissed lobbyists’ arguments so it would run dry credit.