Payday Lenders in Virginia

Payday Loans are Legal in Virginia

Beware of predatory lending

Payday Lenders in Virginia

Payday loans are often seen as a quick solution for those who need money urgently and cannot wait until their next paycheck.

In Virginia, the laws surrounding payday loans have evolved over time to offer more protection to consumers. The 2020 legislation, for example, restricts lenders from charging interest and fees higher than 36% and limits the maximum loan amount to $2,500. However, despite these measures, the state still struggles with predatory lenders, particularly those who operate online and exploit vulnerable individuals.

It is crucial for borrowers to exercise caution when considering a payday loan and to understand the terms and fees associated with it. Virginia requires lenders to obtain a license to operate, and borrowers should ensure that they are dealing with a licensed lender before applying for a loan. Additionally, borrowers should avoid lenders who demand upfront fees or make promises of guaranteed approval, as these are potential signs of a scam. By taking the time to research lenders and being informed about their rights, borrowers can avoid falling into the trap of predatory lenders and make informed decisions about their finances.

Payday Loan Laws

Virginia has very strict regulations surrounding payday lending that essentially turn these loans into a type of installment loan, given that the minimum loan term is 4 months (unless the monthly payment would be less than 6% of the borrower’s income) and the interest rate is capped at 36%. Va.

Loan Terms and Conditions

Maximum loan amount: $2500

Maximum Interest Rate: 36%

Minimum loan term: 4 months

Maximum loan term: 2 years

Number of rollovers allowed: none

Finance Charge: 8% monthly or $25 monthly, which ever is less

Legal action: 3 Years

Certified Payday Lenders in Virginia

Company NameCompany scoreLicense Status
Enova International, Inc.7.8Valid
Big Picture Loans, LLC7.6Valid
CURO Intermediate Holdings6.1Valid
Delbert Services5.1Valid

History of Virginia Payday Loans

Virginia’s payday loan regulations have undergone several changes since the industry was first introduced in 1998. The state’s lawmakers passed the Payday Loan Act in 2002, allowing licensed payday lenders to operate in the state. However, over the years, these lenders found ways to exploit legal loopholes to charge high triple-digit APR rates on payday loans. To protect Virginia customers from such predatory practices, the state passed HB 12 Payday Loan Act in 2009, which imposed restrictions on payday lending, such as a 36% APR cap and a maximum loan fee of 20%. Despite these measures, the industry continued to find ways around the law, such as operating online or offering open-ended loans. In 2020, new legislation called HB 789 was passed, which further restricted payday lenders by capping interest and fees at 36% and limiting loan amounts to $2,500 with repayment terms ranging from 4 to 24 months. The state’s regulations have come a long way, but the fight to protect borrowers from predatory lending practices continues.

How to file a complaint

Borrowers can submit a complaint through the Bureau of Financial Institutions by downloading the form that can be found on their website and either emailing it or faxing it.

Virginia Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

Payday loans can easily turn a temporary need into an endless cycle of debt. It can be difficult to find a balance between repaying payday loans and paying living expenses, which often leads to more borrowing. Virginia payday loan borrowers can still escape debt, even though it is difficult. Contacting your lender to try and renegotiate a repayment schedule, reducing the amount owed or extend the payment period is advisable. You may want to consider refinancing your loan with a lower rate using a more traditional borrowing method. Only file for bankruptcy as a last resort, and discuss it with a lawyer before doing so.

Types of Quick Loans in Virginia

Alternatives to Payday Loans in Virginia

Personal Loans

Personal loans can be used for a variety of purposes including debt consolidation, home improvements or medical bills. These loans usually have fixed rates of interest and repayment terms of several months or years. Personal loans are available in Virginia from traditional banks, credit cooperatives and online lenders. Rates and fees for personal loans can be affected by credit scores and other factors.

Land Loans

Land loans in Virginia are secured loans that can be used to buy or refinance land such as residential lots or agricultural land. These loans are considered riskier by lenders, and therefore have shorter repayment terms with higher interest rates. A borrower from Virginia who wants to get a land loan should be ready to make a large down payment, have excellent credit, and have a plan on how they plan to use the land. Banks, credit unions and private lenders offer land loans in Virginia. To facilitate the loan application, borrowers should be prepared with additional documentation such as property surveys.

Home Equity Loans

Home equity loans use the equity in a borrower's house as collateral. Since they are backed by collateral, these loans have lower interest rate than other types of loans. Virginia homeowners are able to borrow up 80% of the equity in their home, depending on who is lending and how creditworthy the borrower is. These loans can be used to pay for home renovations, education costs, medical expenses, and other purposes. Before applying, the borrower should carefully consider the risks of using their home as collateral.

Bad Credit Loans in Virginia

Virginia bad credit loans are designed for borrowers with low credit scores or a limited credit history. Because of the increased risk, lenders will charge higher rates and fees for these kinds of loans. The amount borrowed can also be lower. Secured and unsecured bad credit loans are both available. Secured loans require collateral such as a car or a savings account. Before borrowing, Virginia residents with poor credit ratings are encouraged to do thorough research, compare fees and terms from various lenders. The proper evaluation of loan conditions, timely payments and responsible credit use can help to rebuild credit scores.

Virginia Small Business Loans

There are several types of small business loans available in Virginia, including:

  • SBA loans: Loans that are partially guaranteed by the U.S. Small Business Administration and are designed to help small businesses access capital and obtain favorable loan terms.
  • Business lines of credit: A flexible borrowing option that gives businesses access to funds as they are needed. Interest is only paid on the amount borrowed.
  • Virginia Small Business Financing Authority (VSBFA) Loans: VSBFA offers a range of loan programs to help small businesses in Virginia, including loans for startups, working capital, and equipment purchases.
  • Invoice financing: A financing option that allows businesses to receive an advance on their unpaid invoices, with repayment once the invoice is paid.
  • Community Development Financial Institutions (CDFIs): CDFIs are specialized lenders that offer loans to underserved communities and small businesses in Virginia.

VA loans in Virginia

The VA loan is a government-backed mortgage that offers many benefits to veterans, servicemen, and their spouses who are living in Virginia. These loans allow these individuals to buy a primary home, such as single-family houses, townhouses and condominiums. VA loans offer the opportunity to finance 100% of a home's worth without requiring a down payment. VA loans in Virginia do not require mortgage insurance. This can save borrowers thousands over the course of their loan. The VA has specific requirements for eligibility, including military service, income, and credit scores.

Virginia Student Loans

Many options are available to Virginia students to help finance their college education. These options include:

  • Federal Student Loans: These loans are offered by the federal government and include Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.
  • Virginia Guaranteed Assistance Program (VGAP): This program provides financial assistance to students who attend a public college or university in Virginia and meet certain income and eligibility requirements.
  • Virginia Military Survivors and Dependents Education Program: This program provides education benefits to spouses and children of military service members who were killed, missing in action, or who became totally and permanently disabled as a result of their military service.
  • Private Student Loans: Loans from private lenders, they commonly have higher interest rates and may require a co-signer.
  • Virginia Income Information

    According to the 2021 U.S. Census, Virginia had a median household income of $80,615, significantly higher than the national median of $69,021. Virginia has a diverse economy that includes industries such as technology, defense, agriculture, and tourism. The state’s gross domestic product (GDP) ranks among the highest in the country, and its low unemployment rate is consistently below the national average. The median household income and poverty levels vary significantly by county in Virginia, with Loudoun County having the highest median income at $147,111, 92.6% above the state average, and Kent County has the lowest at $30,058, 60.7% below the state average. Additionally, the cost of living in Virginia is higher than the national average, which can put a strain on households with lower incomes. The poverty percentage in Virginia in 2021 was 11.6%.

    United States Census Bureau. “Poverty in the United States: 2021.” Accessed on May 1, 2023.
    United States Census Bureau. U.S. Census Bureau QuickFacts: Virginia. Accessed on May 1, 2023.

    Virginia Payday Lender Complaints

    Below are trends associated with some payday lenders in Virginia, as reported to the Consumer Financial Protection Bureau.
    Company Name Count
    Enova International, Inc. 116
    Big Picture Loans, LLC 26
    CURO Intermediate Holdings 19
    Delbert Services 17
    Total Complaints 433

    Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on May 1, 2023.

    Most Common Issues

    Complaint type Count
    Unexpected fees or interest 185
    Can’t stop withdrawals from bank 43
    Struggling to pay loan 43
    Can’t contact lender 30
    Received a loan never applied for 27

    What are the main reasons residents of Virginia apply for payday cash advance online or offline

    Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

    Reason Share
    Regular Expenses (Utilities, car payment) 53%
    Unexpected emergency/expense 16%
    Rent/Mortgage 10%
    Something Special 8%
    Other 5%
    Did not answer 2%

    Payday Lenders by City

    Frequently Asked Questions

    Will applying for a payday loan impact my credit?

    Payday loans are typically not reported to the three major credit reporting agencies, and most lenders do not conduct credit checks as part of their application process.

    What do I need to apply for a payday loan?

    To apply for a payday loan in Virginia, you typically need to provide proof of income, such as a pay stub or bank statement. You will also need to provide personal information, such as your name, address, and Social Security number, as well as information about your employment and banking history.

    Can I cancel my payday loan?

    Yes, in Virginia, you have the right to cancel a payday loan by the end of the business day following the day the loan was originated. This means that if you decide you don’t want the loan, you have until the end of the next business day to notify the lender that you want to cancel the loan agreement.

    Can a payday loan lender garnish my wages?

    A payday lender in Virginia can garnish your wages if they obtain a court judgment against you, but the amount garnished is limited to 25% of your disposable earnings for most debts, including payday loans.

    Can spouses have separate loans?

    Yes, spouses can have separate payday loans in Virginia as long as they individually meet the lender’s eligibility requirements and can provide the necessary documentation and information to apply.

    When will I receive my funds if I am approved for a payday loan?

    Funds are typically received on the same day or the next business day after loan approval, and can be disbursed through various methods, such as direct deposit.

    What happens if I can’t repay my payday loan on time?

    If a borrower is unable to repay their payday loan on time in Virginia, the lender may charge additional fees, extend or roll over the loan, report the delinquent account to credit bureaus, or pursue legal action.

    When could I apply for another payday loan?

    Borrowers can apply for another payday loan as soon as they have repaid their current loan in full.
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