Tag Archives: Virginia Legislation

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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