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Crackdown on high-interest loans вЂ” blocked for 10 years in Richmond вЂ” clears a crucial hurdle that is first
RICHMOND вЂ” A bill that bans the type of online loans that hit Virginians with interest levels often exceeding 900% passed an integral hurdle that is first the General Assembly on Thursday.
The legislation targeting the web companies additionally would slash costs levied for payday, vehicle title as well as other short-term loans.
It passed the homely house work and Commerce Committee 14-8. a comparable bill, sponsored by state Sen. Mamie Locke, D-Hampton, should come ahead of the equivalent Senate committee later on this thirty days.
The General Assembly has rejected efforts to chip away at the loopholes in existing rules and caps on interest rates вЂ” some of which translate to triple-digit interest rates for more than a decade.
Your house billвЂ™s sponsor, Del. Lamont Bagby, D-Henrico, stated the measure would guarantee treatment that is fair borrowers and lenders, and dismissed lobbyistsвЂ™ arguments so it would run dry credit.
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