Predatory lending, imposing abusive terms and high interest rates on borrowers regardless of ability to pay, is a nagging problem in Virginia, the 36th Senate District and especially in the U.S. 1 Corridor. I will introduce legislation in January to end these abusive practices.
There are many kinds of high-interest or predatory loans. First, payday loans are loans that are secured against a consumer’s pay check. In 2009, the Virginia General Assembly enacted restrictions on payday loans which caused the practice to scale back to about six locations in and around the 36th District.