Efforts to reform the payday loan industry are moving forward. The House of Delegates yesterday voted toapprove an amendment that would cap the annual interest rate lenders could charge to 72 percent.
The provision offered by Delegate Jennifer McClellan of Richmond would decrease the amount it wouldcost to get a two-week loan to 2-77 per 100 dollars -- from 15 dollars per 100.
The maximum loan isfive hundred dollars. It was the first real blow payday lenders have suffered in the debate over whetherto reform the industry. Some Assembly members want to repeal the law that allowed it to charge more than the 36 percent annual interest rate that other lenders are held to.
The bill is scheduled for a House vote next week.
source:http://www.wtvr.com
