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Crackdown on high-interest loans — blocked for ten years in Richmond — clears a crucial first hurdle

Crackdown on high-interest loans — blocked for ten years in Richmond — clears a crucial first hurdle

RICHMOND — A bill that bans the type of online loans that hit Virginians with interest levels sometimes surpassing 900% passed an integral hurdle that is first the General Assembly on Thursday.

The legislation focusing on the web companies additionally would slash fees levied for payday, automobile name along with other short-term loans.

It passed the home work and Commerce Committee 14-8. a comparable bill, sponsored by state Sen. Mamie Locke, D-Hampton, should come ahead of the comparable Senate committee later on this thirty days.

For over a ten years, the typical Assembly has rejected efforts to chip away during the loopholes in current guidelines and caps on interest prices — a number of which translate to triple-digit rates of interest.