Payday lenders challenge payday loan law
Payday loan companies are taking their case directly to the voters.
State lawmakers passed new restrictions on payday lenders, and now the companies are firing back as they are challenging the law on the ballot.
The new law limits the interest rate for payday loans to 28 percent and limits the number of loans a consumer can get. That number is limited to four a year.
Payday loan New Law
“I’ll pay on time, but I may have to come back again if I have to help my brother again”
The rite of borrowing modest amounts of cash against a future paycheck — known as payday lending — has become an increasingly popular practice for working families in Washington’s suburbs. It has also become big business across Virginia.
Payday lenders challenge law.
Payday lenders said they are just trying to stay in business. There are more than 1,600 stores across the state with a lot of jobs on the line.
The payday industry has already filed the first round of petition signatures with the state. Their plan is to put the issue on the statewide ballot in November.