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How Virginia’s 2020 Fairness in Lending Act Reforms loans that are small-Dollar

How Virginia’s 2020 Fairness in Lending Act Reforms loans that are small-Dollar

Legislation closes regulatory loopholes, caps interest levels, and offers classes for any other states

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Overview

After many years of legislative efforts to foster a secure and viable marketplace for tiny loans, Virginia lawmakers in 2020 passed bipartisan legislation—the Fairness in Lending Act (S.B. 421/H.B. 789)—to prohibit loans with big last payments, referred to as balloon payments, and reduce costs. The legislation rationalizes just exactly just what have been a disparate regulatory framework, governed with a patchwork of regulations that permitted payday and car name loans with unaffordable re payments and needlessly high expenses, and uncovered borrowers to economic damage, including duplicated borrowing and high prices of car repossession. Continue reading How Virginia’s 2020 Fairness in Lending Act Reforms loans that are small-Dollar