As one of the first states in the nation, Virginia is always looked to as one of the examples when they create their laws. In the case of payday loans, this is also the case. Virginia payday loan laws are not very complicated to understand, but many people do not recognize the protections afforded the people of Virgina who borrow money from lenders. In the article below we will help you to recognize what kind of laws may be working in your favor and which ones you can use to avoid falling into any kind of payday loan trap.

Virginia Payday Loan Laws and Licensing

One of the main issues that every state has to deal with is who they license the ability to lend money to. Many different companies want the rights to accept payday loans because it is such a profitable industry, but few of them have the reputation that is necessary to be granted those rights. Every online lender that operates in the state must be first licensed and as of now there is only one that has been able to claim this status. The “Check City” brand is one of the most well known in Virginia because it is the only online place to get a payday loan. Nonetheless, there are many different storefronts that must operate on the same type of laws as the online companies.

Payments and Virginia Payday Loan Laws

Unlike other states, the Virginia payday loan laws call for a blanket fee for every $100 borrowed. A fee of $26.38 is assessed to each increment of $100, which is the maximum that the state allows. In many cases the lenders who have been able to ask for much more than 26.38%, but the law is very explicit in the state of Virginia.

Also, these payday lenders are not allowed to do quite a few things with customers either. They are unable to renew or extend loans for debtors. In many cases the Virginia payday loan laws prohibit lenders from offering money to military personnel who are “off limits” as declared by their military commander. On the topic of the military, they are also not allowed to garnish wages of military men who are deployed in combat or at a combat support post. As well, no lender can garnish anyone's paycheck without due process. Therefore, due to the high military population in the state of Virgina, the lawmakers have passed many laws directed for military personnel.