BE IT RESOLVED by the Loudoun County Democratic Committee that the General Assembly and the Governor of the Commonwealth of Virginia are requested to take action in connection with the current regular session of the General Assembly of Virginia to enact laws that will prevent further exploitative payday lending practices, including but not limited to:The resolution will now be forwarded to the Governor and our leaders in the Assembly for consideration in the negotiations over the payday lending bills before the Assembly.
1. Enactment of an annual interest rate cap of 36% for an consumer loans made in the commonwealth of Virginia, thus making those conditions consistent with other established lending provisions.
2. Prohibition of the use of a personal check or other method by a creditor to gain access to a consumer's bank account or method to gain a title to a consumer's moter vehicle as collateral for a payday loan; and
3. Enactment of supplementary and complementary provisions which mirror the provisions of what is commonly referred to as the Talent-Nelson Amendment (Senate Amendment 4331), entitled "Terms of Consumer Credit Extended To Service Memeber's Dependent" and referenced on page S6452 of the June 22, 2006 United States Congressional Record-Senate, a copy of which is annexed to and incorporated by reference inthis Resolution." - LCDC Resolution, passed unanimously, February 27, 2008
The dirty underside of the payday lending industry is the way that they prey on our service men and women. Our former Chair told stories of airmen he knew who sold kitchen appliances to buy diapers for their children, and when they turned to these kinds of loans, were absorbed into a whirlwind of debt.
One hopes that our elected leaders will listen to the opinions of their "committee of the year" on this critical issue.
2 comments:
Sounds like the government should be paying the men and women in the military more money instead of passing legislation to shut down a business that MOST people use responsibly. Next time a politician uses this example with payday lending, ask him why he didn't work on a bill that pays the military more money so soldiers aren't selling appliances to buy diapers.
I totally agree, we should be paying our military a true living wage.
Of course, that is a Federal, not a state issue. Interesting that Congressman Frank Wolf has done nothing about that either.
Ultimately, there should be mechanisms for short-term cash for those in temporary need. However, payday lenders do not base their business models on such emergencies, they base their business models on "26ers." And at the end of the day, when these folks go bankrupt or see their entire financial life hollowed-out, it is the government and the social safety net that has to pick up the slack. Thus, it is in the interest of the taxpaying citizens of Virginia to support legislation that mitigates the evils to which these "businesses" tend, not only for the good of the citizens, but for the good of our pocketbooks at tax time.
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