Tag Archives: consumer finance

Online Lending Legislation Fails in the 2018 Virginia General Assembly

A bill (HB 1248) to require online lenders to obtain a consumer finance company license to offer installment loans to Virginia consumers failed to advance in House of Delegates this session. Another bill (SB 625) that would have restricted the interest rate on such loans to no more than 36% likewise stalled in the House after passing the Senate with strong support. HB 1248, introduced by Delegate Terry Kilgore (R-Gate City), the Chairman of the House Commerce and Labor Committee, represented the work of a study group comprised of industry and government representatives appointed by the Virginia Bureau of Financial …

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Virginia Senate Committee Approves 36% Cap on Consumer Installment Loans

On January 29th, the Virginia Senate Commerce and Labor Committee approved legislation (SB 625) that would restrict the annual interest rate on all installment loans offered by consumer finance companies to no more than 36%. Under Virginia’s current consumer finance company statute, only loans of $2,500 or less are subject to a 36% annual interest rate restriction. For loans over $2,500, there is no restriction and a consumer finance company may charge interest at a rate established by contract. Thus, the bill would take the existing 36% cap – applicable only to loans of $2,500 or less – and extend it to all installment loans that consumer finance companies would be authorized to …

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CFPB Signals Retreat from Aggressive Regulation

The Consumer Financial Protection Bureau (“CFPB”) made significant announcements on January 16th and 17th reflecting a shift to a more industry-friendly regulatory approach under Trump-appointed acting director Mick Mulvaney. The CFPB is reconsidering existing rules and policies put in place under the previous CFPB director, Richard Cordray, with an eye toward rolling back burdensome rules and aggressive enforcement policies. In its January 16th announcement, the CFPB said it will commence a rulemaking process to reconsider the so-called “Payday Loan Rule.” The Payday Loan Rule imposes new restrictions on payday, vehicle title, and certain installment loans under the CFPB’s authority to curb unfair, deceptive, or …

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