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Virginia Payday Loans New Laws Are A Good Fit For All

Virginia State Map
Virginia State Map
The state legislature of Virginia adopted new legislation in April of 2008 regarding payday loans. In this new legislation they mandated that there would be an interest rate cap of 36% for a loans made to the citizenry of the state of Virginia. In this new legislation they also mandated that there would be created a statewide database. The purpose of this database would be to screen all borrowers that would apply for a payday loan in the state. The state wanted to make certain that no borrower of a payday loan is able to borrow on more than one loan at a time; it is their expressed desire to be one loan active for borrower. The state was to try to limit the exposure that a borrower might be subjected to in terms of interest rates and fees on a payday loan.

Other attributes of this bill which was sponsored by Senator Richard Saslaw are that payday loan lenders must provide a minimum of two pay periods for the borrower to repay a loan; this is a great improvement a great benefit for people that would utilize payday loans prior to this change in state law there was only a seven day minimum, so this gives additional much needed time for some that may require it. With the newly instituted data tracking base the loan lenders are only allowed to make one loan at a time a borrower and the law requires that a borrower is required to wait 24 hours before they are allowed to secure another loan from a payday loan lender.

Virginia State Flag
Virginia State Flag
Borrowers of Virginia Payday loans that feel the need to take out 5 payday loans in a 6 month period of time are required by law to undergo a waiting period of at least 45 days before any additional loans are accepted. If a borrower is on their fifth loan and they are anticipating a need for a sixth loan situation (which is prohibited by Virginia state law,) then the borrower does have the option of extending the 5th active loan for an additional two weeks. The downside of a two week extension for a 5th loan is that if you are interested in doing another loan anytime soon you are going to have to wait for a two month waiting period before doing another payday loan. In the unfortunate event that you need to, you are allowed an extended payment plan, but only once a year followed by a three month cooling off period. If a lender of payday loans attempts to make you believe that they can criminally prosecute you for non-payment, the state will fine the lender 3 times the cost of the loan issued to you. This behavior is in violation of the federal Fair Debt Collection Practices Act protections. Most of these provisions took effect as of January 1, 2009.

On July 8th a law takes effect which mandates the State Corporation Commission by January 1st to make arrangements with a third party to develop and keep an Internet database that lenders of payday loans will be required to create and maintain an Internet database for lenders to be able to check prior to granting a loan. This is in place to help people that get excessive loans to curtail some of their activities and consequently save some money in interest and fees from servicing multiple loans. Because of the ease and convenience of acquiring payday loans many people may lack the self-control to do this for themselves. The full amount that a lender can advance a borrower on Virginia payday loans is $500 dollars. The allowable fee for such a loan is 15 percent of the face amount of the loan, and the permitted time period is a minimum of 7 days.

and responsible consumers should always consider payday loans as part of their financial arsenal. If you are a financially responsible individual, and you have a good sense of how your cash flows then payday loans can be a great help to you. The responsible borrower need not ever be concerned with the additional fees and charges that some have claimed to have experienced because these will not be applicable to you. Repaying a payday loan in a timely manner poses no significant interest expense over what one would incur from receiving a loan from a banking institution. The interest rate of the state is capped at 36 percent a year, which adds additional assurances that the interest on a payday loan will never get wildly out of control.

Virginia payday loans
Virginia payday loans
Should you ever find yourself in the market for Virginia payday loans it would be good for you to carefully assess your own personal financial situation. Do your research and become intimately familiar with what all of your personal expenses are as well as exactly how much money you have coming in and what the time-lines are on your own personal cash flow. This little bit of information will serve you well when it comes to determining exactly how much money you need to borrow on a payday loan. A well informed shopper always gets the better price for a product and service, therefore be very certain of what you’re working with personally terms of your own cash flow and your expenses.

When you begin to shop for payday Loan Companies shop around for the best rates and terms. As much as possible certain that you understand every nuance of the rates and terms and exactly what they mean for you financially. Find the salesperson that does not mind spending time with you and showing you exactly what a payday loan will look like for you. This will be invaluable in helping you to determine exactly how much you can afford to borrow as well as how much you should be borrowing. You want to avoid borrowing more than what you would actually need, remember that everything that you borrowed it is costing you money in the long run.