General Assembly Approves Accelerated Effective Date for Consumer Lending Reforms

“This is great news for the many Virginians finding themselves in a tough financial situation because of COVID-19 and who may turn to small-dollar loans in order to make ends meet,” said Attorney General Herring. “These consumer lending reforms will close easily abused loopholes and provide much needed protections for Virginia borrowers. I’m glad I was able to help get the effective date for these important bills moved up so that Virginians who take out these small dollar loans during this difficult time can be better protected.”

The legislation tightens the rules on exploitative predatory lenders and closes easily abused loopholes so that Virginia borrowers are afforded protections regardless of the type of loan they seek. It will also give Attorney General Herring’s Predatory Lending Unit more tools to enforce these new protections and better combat predatory lenders operating in the Commonwealth.

Attorney General Herring has made it a priority to protect Virginians from predatory lenders. He created the OAG’s first Predatory Lending Unit to investigate and prosecute suspected violations of state and federal consumer lending statutes, including laws concerning payday loans, car title loans, consumer finance loans, mortgage loans, mortgage servicing, and foreclosure rescue services. The Unit also focuses on consumer education so Virginians are aware of the potential risks of these loans, as well as alternatives.