RICHMOND, Va. -- Payday lending in Virginia has apparently taken another step toward survival albeit with additional restrictions.
Opponents of the controversial industry had tried to restrict payday lenders to changing 36% interest on their typically two week loans, a move which the industry said would result in their being chased from the commonwealth.
The compromise, which Virginia lawmakers have brokered, still caps the loans at 36%, but allows the lenders to continue charging fees, according to published media reports, and increased the maximum time permitted to repay the loans from two to four weeks. The legislation would also cap the number of payday loans an individual could have to no more than five per year.
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