Interest rate cap bill squeaks by Crossover deadline; internet lending license fails
The deadline Tuesday -- "Crossover Day" -- is when the
The
Without a license -- such as those that banks, credit unions, small loan companies, car title lenders or payday lenders have -- the state's basic 12 percent usury cap applies.
The bill that caps rates on installment loans to consumers -- the type of loans many people take out to buy items such as appliances, trailers or Sea-doos -- was a re-regulation requested by the lenders themselves and supported by consumer advocates and Attorney General
That re-regulation extends the current cap of 36 percent on installment loans for less than
"I think the only people who'd oppose this are online lenders," Speer said.
Unlike licensed consumer finance companies, which make loans for fixed terms of up to 10 years with set monthly installments, internet lenders charge high rates, often don't bother with credit checks and at times structure credit and charge fees in ways that boost the principal owed.
"These internet lenders are a
n entirely different business" than the licensed consumer finance companies that make small installment loans, said the bill's sponsor, state Sen.
Last week, the attorney general's office settled a complaint that one internet lender, MoneyLion, had charged interest rates as high as 359 percent, when the company agreed to refund more than
"One-hundred and fifty percent to 350 percent rates on loans above
The interest rate cap bill, Senate Bill 625, will now move to the House.
"This bill needs to get done," said
"We don't want to have to bring Sharky back to the floor of the House," he said, referring to the stuffed shark that former Newport News Del.
In the House, meanwhile, a bill that would have allowed internet lenders to get licenses to operate in
Scull said the Peninsula delegation, led by Del.
On Tuesday, the House plowed through nearly 180 bills up for their final vote, and the
Among the bills passing the House was one requiring Medicaid's adult recipients to work, if they are not disabled.
The state
"We are pleased the bill has passed the
The
"This is unusual tax legislation," Norment said. "You're not just discussing increasing the sales tax, you're eliminating three taxes."
The
One, Senate Bill 266, would authorize new neonatal care units in
Another, Senate Bill 844, says managed care companies that want to make money running plans for Medicaid or state employees also have to offer Affordable Care Act coverage to individuals.
A third, Senate Bill 915, proposed a tax on hospitals to provide coverage through Medicaid for more people with serious mental illness, though its sponsor, state Sen.
Ress can be reached by telephone at 757-247-4535
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