The Commonwealth of Virginia passed a law in 2008 that amended the Payday Loan Act and at the same time expanded the Consumer Protection Act. This article talks about the West Virginia payday loan laws to help consumers considering the best alternative source of immediate cash.
The state of Virginia usury laws set the interest fees at 8 percent at 9 percent for collection, but the payday lenders or businesses providing loans consumers according to the Virginia code except these types of lenders so they can charge more than the maximum limit set forth in the Usury laws.
What Is The Virginia Payday Loan Act?
This is a law that covers the lending industries, specifically small dollar lenders, or payday loan lenders in the state. Businesses found guilty of violating the laws or guilty of the Class 6 felony can be fined or subjected to criminal sanctions.
Payday Loans Limits
In West Virginia, payday lenders cannot extend or renew loans; they also cannot grant another loan to the same borrower nor approve loans when Virginians just receive their garnishee military pay or full paychecks.
Payday lenders are also required to keep track of borrowers by making sure they have active database to know if a particular person has outstanding loan as no borrowers granted another payday loan at any one time.
Payday Loan Interest Limits and Due Dates
Companies like payday lenders cannot charge their clients more than 36% or 1/5 of the loan amount or about 20% interest rate, while verification fee fixed at $5. Borrowers applying for payday loans must have two pay cycles to pay off their loans. In other words, those with weekly income have two weeks to repay the loan in full.
Payday lenders, merchant, or agency are those deemed to be providing unsecured short term loans in exchange to future paycheck, income, or earnings from rights.Share