Tag Archives: consumer finance

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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