In the meantime, the State Corporation Commission approved 11 payday lending companies’ requests to offer open-end credit products. Another seven applications are pending.
In Virginia, lenders offering open-end credit are unregulated. They can charge whatever they want as long as they don’t charge anything for the first 25 days. (My emphasis)
Awesome. So if you want to systematically rob poor people and hold them in perpetual debt, all you have to do is not charge interest for the first 25 days. I'm not sure I have words scathing enough for the flagrant incompetence exhibited by the bolded sentence above. I will be interested to see how the gubernatorial candidates respond to this news, given that the State Corporation Commission is (correct me if I'm wrong) an executive branch agency. Please call your legislators before the General Assembly session and let them know how you feel about this subject. Thanks for reading.
Cross-posted to Blue Commonwealth.