Virginia House votes for payday loan protections

A customer enters a pay day loan store Monday, June 28, 2010 in Chandler, Ariz. Payday loan customers will have to look elsewhere for credit options when the law allowing the industry to operate in Arizona expires on Thursday. (AP Photo/Matt York)(ASSOCIATED PRESS/Matt York)
Virginia could put significant new limits on short-term loans under a bill approved last Friday by the house of delegates.

The bill would cap short-term loan rates at 36% for things such as payday lending, title lending, online lending, consumer finance and open credit loans.

It also would require a public annual report on those loans in Virginia.

“The only reason that they are preying upon Virginians is because we allow it,” said Del. Lamont Bagby, D-Henrico.

The House passed a separate bill earlier in the week that focused on student loan borrower protections.

The Senate also voted Friday to require banks to report suspicion of elder abuse or exploitation to police when they refuse to execute a transaction because of that concern.

Another Senate bill, endorsed 25-13, would ban retaliation against workers who complain they are misclassified as independent contractors.

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