Exactly How Virginia’s 2020 Fairness in Lending Act Reforms Small-Dollar Loans

Exactly How Virginia’s 2020 Fairness in Lending Act Reforms Small-Dollar Loans

Legislation closes loopholes that are regulatory caps rates of interest, and offers classes for any other states

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Overview

After several years of legislative efforts to foster a secure and market that is viable tiny loans, Virginia lawmakers in 2020 passed bipartisan legislation—the Fairness in Lending Act (S.B. 421/H.B. 789)—to prohibit loans with big last re re payments, referred to as balloon re re payments, and reduce costs. The legislation rationalizes just just what was indeed a disparate regulatory structure, governed with a patchwork of rules that permitted payday and automobile name loans with unaffordable re re payments and needlessly high expenses, and uncovered borrowers to monetary damage, including duplicated borrowing and high prices of automobile repossession. Continue reading “Exactly How Virginia’s 2020 Fairness in Lending Act Reforms Small-Dollar Loans”