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Virginia Is Stopping The Debt Trap, No As A Result Of Federal Regulators

Virginia Is Stopping The Debt Trap, No As A Result Of Federal Regulators

The federal CFPB is actually a “lapdog for the lending that is high-cost,” the visitor authors state.

By Dana Wiggins and Benjamin Hoyne (guest line)

We’ve been fighting lending that is predatory Virginia for longer than two decades. The Virginia Poverty Law Center’s hotline has counseled lots and lots of payday and title loan borrowers trapped in a period of financial obligation.

For several, an unaffordable pay day loan of the few hundred bucks due back in a single thirty days quickly became an anchor around their necks. Numerous borrowers ultimately wound up spending more in fees — sometimes thousands of bucks more — than they borrowed into the place that is first.

These financial obligation trap loans have actually siphoned huge amounts of dollars through the pouches of hardworking Virginia families since payday lending had been authorized right right right here back 2002. Faith communities for the commonwealth have offered economic help to borrowers whenever predatory loans caused them to obtain behind on lease or energy re re payments.