Cash Pay Advance

Harvey Morgan of Gloucester, who now opposes payday lenders, allowed the industry to bypass the state’s usury laws and charge $15 for every $100 loaned up to $500 to be paid back on the borrower’s next payday. In February, as Virginia and several other states debated reforming the industry, the association announced a $10 million public education campaign to try to clean up its image including advertisements and financial literacy programs coupled with self-imposed reforms like extended payment plans and a ban on ads that promote payday advances for frivolous uses. Johnson’s organization and other opponents hope to hit legislators from numerous fronts, from a petition signed by church members across Virginia to protests outside payday lending stores to resolutions passed by local governments urging the General Assembly to cap the interest rate at 36 percent. Scull III established Virginians Against Payday Loans after one of his employees got deep into debt after taking out several payday advances, and a group of industry whistleblowers formed Cap America, which was vocal in the fight for the D. Find Out More

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