Vote NO on HB 1248–Don’t Feed the Internet Loansharks
Saturday, February 10th, 2018
The Online Lending Alliance–a group of internet loansharks is circling Virginia and telling your Delegate to vote for HB 1248. Tell you Delegate to vote NO to keep the internet loansharks out.
HB 1248 will allow internet lenders with no locations in Virginia to get a license under the Virginia Consumer Finance Act. This will allow these lenders, who could be located anywhere in the world, the opportunity to get a license to make loans to Virginians.
Although this Bill makes several changes to the Consumer Finance Act in order to accommodate internet lenders, it does not make any changes to the law that allows unregulated loans over $2,500. Loans over $2,500 have no interest rate cap and no restrictions of any kind.
If this Bill passes, internet lenders will be permitted to get a license to make loans at very high interest rates. Here are some examples of internet lenders that have already been making abusive loans in Virginia :
• Money Key was making loans at 399% interest until they were stopped by the Attorney General’s Office in 2016
• CashCall was making loans at over 200% interest to 10,000 Virginia borrowers until they settled a lawsuit with the Attorney General’s Office last year
Virginia has had responsible consumer finance companies operating all over the state for 100 years. Licensing lenders with no stores in Virginia with no interest rate caps and no restrictions will likely put many of these responsible lenders out of business resulting in loss of jobs and fewer affordable loan options for Virginians.