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.
March 5th, 2006 at 9:33 am
[…] As I presented the new bill on the floor of the House, I realized that many delegates supported my original bill. Through discussions with these delegates, we jointly decided that if we passed the less restrictive bill this year, it would be difficult to come back in 2007 with more restrictive regulations … At the end of the day, I agreed to a strategic move to strike my less restrictive bill and regroup for 2007, when I will submit the original legislation that will truly provide meaningful regulation to the payday lending industry. […]