The following is my column that will appear in the Mt. Vernon Gazette and The Mt. Vernon Voice in the week of June 23, 2015.
Predatory Lending Continues Its March Through Virginia and U.S. 1The Virginia’s State Corporation Commission latest annual report says that predatory car title lending is thriving in Virginia . With nearly three dozen car title lenders between Alexandria and Quantico on U.S. 1, this is troubling news, except to the lenders out to make big profits. You can read the full report on my online newsletter –The Dixie Pig – at scottsurovell.blogspot.com.
Car title lending began in our state in 2010 after Virginia limited interest rates on payday loans and predatory lenders argued that a new option was needed. Virginia law authorizes lenders to lend money at rates up to 30% per month which equates to around a 297% annual percentage rate (APR). A consumer can borrow up to 50% of their vehicle’s equity and the loan term is limited.