Cash Pay Advance

NEW YORK (Associated Press) - Borrowers would have longer to repay a payday loan but would be limited in how many they could get each year under a compromise announced Monday by members of the House of Delegates who say they want to protect Virginians from getting trapped in debt without putting the lenders out of business. Industry opponents got their 36 percent cap on the annual interest rate lenders can charge, but the legislation allows lenders to charge other fees similar to those already in place. Currently, lenders can charge $15 for every $100 loaned up to the maximum $500 loan, pushing interest rates to 390 percent for a two-week loan. Under the proposed legislation, lenders could charge a fee of 10 percent of the total loan, a $5 verification fee and then 36 percent interest on the loan. Industry opponents, who have said a 36 percent cap was the only way to protect people, say they can support the new fee structure because the legislation limits the number of loans borrowers can get. Find Out More

No Tags