A bill to regulate car title lenders has cleared its first hurdle and the full Senate in Virginia will vote on the bill today.
The Senate Commerce and Labor Committee voted unanimously in favor of a set of regulations that would put a one-year limit on the loans, set up a maximum interest rate and require the lenders to be licensed.
The lenders are unregulated in Virginia. Most lend up to 50% of a car’s value, charge more than 300 percent interest and repossess the borrower’s vehicle if he falls behind on the repayment.
The lenders have said some proposals – especially interest rate caps – would put them out of business.
source here.
