General Assembly approves accelerated effective date for consumer loan reforms
(STL.News) – Following Attorney General Mark Herring’s letter to Governor Northam calling for an expedited effective date for important comprehensive reforms to curb abusive lending practices, the General Assembly postponed the date of these reforms come into effect in January 2021. In his letter, Attorney General Herring requested that the effective dates of House Bill 789 (Delegate Lamont Bagby) and Senate Bill 421 ( Senator Mamie Locke) be advanced earlier, citing the need to better protect Virginians in these difficult financial times caused by the COVID-19[female[feminine pandemic.
“This is great news for the many Virginians who find themselves in dire financial straits due to COVID-19[female[feminine and who can turn to small loans to make ends meet, ”Attorney General Herring said. “These consumer loan reforms will fill easily exploited loopholes and provide much-needed protections for consumers. Virginia borrowers. I am glad that I was able to help advance the effective date of these important bills so that Virginians who take out these small dollar loans during this difficult time can be better protected.
The legislation strengthens the rules on predatory lenders who exploit and fills easily abused loopholes so that Virginia borrowers benefit from protection 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 tackle predatory lenders operating in the Commonwealth.
Attorney General Herring has made protecting Virginians from predatory lenders a priority. He created the OAG’s first Predatory Lending Unit to investigate and prosecute alleged violations of federal and state consumer loan laws, including laws regarding payday loans, auto title loans, home loans. consumption, mortgages, mortgage services and foreclosure relief services. The unit is also focusing on educating consumers so Virginians are aware of the potential risks of these loans, as well as the alternatives.