Virginia Lawmakers Limit Payday Loan Firms’ Ability to Garnish Military Wages
By Roman ParchowskyPayday Loan Writer
In Virginia, a new state law, effective today, offers military service members and their family some protection from payday loan lenders. The law prevents short-term no fax cash loan companies from garnisheeing military wages and prohibits them from collecting against deployed service members or their families.
In addition the law prohibits lenders from contacting a military member’s commanding officer to collect on a loan. It requires the lender to be bound by repayment agreements negotiated through military counselors or another third party credit adviser.
And if a base commander declares a payday loan center off limits, lenders are barred from making loans to military personnel.
