Payday Lending Practices Receive Scrutiny In Virginia | WAMU 88.5 - American University Radio

WAMU 88.5 : News

Filed Under:

Payday Lending Practices Receive Scrutiny In Virginia

Play associated audio

By Anne Marie Morgan, Virginia Public Radio

Consumer advocates and 99 local governments in Virginia are calling on the state general assembly to cap interest rates on payday lending. Several lawmakers have also introduced legislation that would limit interest on similar, open-ended consumer loans.

Recent stricter laws have resulted in less payday lending, but consumers can still get these and other high-interest loans.

Staunton City Council Member Bruce Elder says localities see the negative effects, such as when lower-income citizens default and lose their cars.

"And at the heart of many of these situations -- this also is legal situations -- are these predatory loans, are these car-title loans. People have lost their ability to get back and forth to work," he says.

The 99 localities are calling for a 36 percent cap on payday lending and some on ALL similar loans. Bill opponents say the loans are the only way that consumers with bad credit can get urgently-needed cash.

NPR

How One Poet's 'Genius Grant' Became A Gift To Future Generations

Amy Clampitt was named a MacArthur genius in 1992. Today, the home she bought with her award money is used to house rising poets in tuition-free residencies.
NPR

Edible Packaging? Retailers Not Quite Ready To Ditch The Wrapper

To reduce waste, some enterprising companies are trying to roll out products that make the package part of the snack — edible packaging. But selling it to the retail market is trickier than it seems.
NPR

Congressional Panels Chastise NHTSA Over GM Ignition Problems

Committees are looking at the National Highway Transportation Safety Administration after questions arose about how it handles recalls, including General Motors' recall over faulty ignition switches.
NPR

When The Power's Out, Solar Panels May Not Keep The Lights On

With the price of solar panels falling, more municipalities and homeowners are installing them. But having solar panels doesn't mean you won't lose power in a blackout — at least not yet.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.