Voices for Virginia's Children Letter of Support
Predatory lending practices seriously threaten the economic security of Virginia’s families, especially low-income families. Heads of low-income families are more likely to find themselves facing desperate economic situations in which payday and car title lenders are their only opportunity for a loan. They are more likely to be unable to pay back the loan, especially in a balloon payment in such a short term. Families are at risk of losing their car and even their homes because of predatory loan practices. These predatory lending practices have the potential to cause great stress for parents and therefore create undue financial hardship for their children. They do not just trap borrowers in a destructive cycle of borrowing and paying, but also put their children’s lives in turmoil.
Voices for Virginia's Children urges Virginia’s legislators to repeal the Payday Loan Act of 2002 by passing HB 619 and cap car title loan APRs at 36% by voting for HB 325. Doing so would be a vital step toward protecting Virginia's families.