Virginia voters want to see the General Assembly take action on curbing high-interest lending in Virginia.
That's one finding of a poll that may factor into the upcoming session.
Three-quarters of voters want tighter regulation on payday lenders and car-title lenders, and more than 80% of voters want to see triple-digit interest rates capped according to a new poll from Christopher Newport University.
Click here to read the full poll results
Jay Speer at the Virginia Poverty Law Center is working with the Legislative Black Caucus on a potential solution that would cap the interest rate at 36% and also allow for a monthly fee of as much as $25. “All of these lenders make the same loans in Colorado and Ohio and charge one third as much as they charge Virginians. So it’s pretty clear they charge the maximum they’re allowed to charge and it has nothing at all to do with market forces.”
High-interest lenders like LoanMax and online lenders like Enova have stepping up their campaign contributions in recent years. Bob Denton at Virginia Tech says they were investing in lawmakers who shared their view of regulation and oversight. “They’re certainly going to support candidates who have been sympathetic to their industry or their positions or their policies, and there’s no question that when it comes to car-title lenders, that has been controversial. And Republicans have protected that industry.”
Until now. When Democrats take over next year, one of the first things on the agenda will be adopting the model currently used in Ohio and Colorado, capping the interest rate at 36% and allowing or an additional fee of as much as $25 a month.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
