Internet payday loans are illegal in the state of Virginia. Many other forms of internet loans violate Virginia’s usury cap, because they aren’t exempted from the law. The VaPERL Coalition stands with Senator Merkley, and others who filed the 2013 SAFE Lending Act in order to combat internet lenders and others from shamelessly skirting state lending laws.  Also on the horizon are bank payday loans, that while they are not yet here in Virginia, may pose a new more sinister threat to Virginia borrowers – control of their bank accounts without recourse. Current internet payday loans, internet installment loans, internet line of credit loans, and bank payday loan products all do or would violate Virginia law if made to Virginia residents. We applaud the efforts to give states who have serious lending laws the Federal support to enforce them. Read the press release on this issue by coalition member, the Virginia Poverty Law Center.

The SAFE Lending Act is a bill filed by U.S. Senators Merkley, Durbin, Blumenthal, and Udall and would ensure that all lenders are playing by the same rules by:

• Requiring all online small-dollar lenders (such as payday lenders) to comply with state law if it provides better consumer protections than federal law;

• Preventing banks from making payday loans in violation of the state law where the consumer resides;

• Providing new federal enforcement measures to protect consumers from online payday lenders that seek to evade state consumer protection laws, such as by locating their businesses off-shore, or affiliating with a Native American Tribe and claiming the right to assert the tribe’s sovereign immunity; and

• Empowering Native American Tribes to enlist the help of the CFPB where needed to protect their members from abusive payday lending on the reservation, and respecting tribal laws that provide stronger consumer protections than are available under state law.

The SAFE Lending Act would also protect consumers’ bank accounts by:

• Closing the single payment loophole in the Electronic Fund Transfer Act and ensure that consumers have control over how lenders access their bank accounts for payment and collections of high-cost loans;

• Safeguarding consumers’ personal information by banning “lead generators” who collect information like Social Security numbers, income and bank account information; and

• Prohibiting lenders from using a borrower’s bank account numbers to create unsigned checks used to withdraw funds, even when consumers have opted out of making payments electronically.

RICHMOND, VA (WWBT) -

Local consumer advocates are warning about an online payday loan company targeting the public. Tom Gallagher, with the Richmond Better Business Bureau, is sounding the alarm. The organization is suspicious about an online payday loan company called Qxlonline.

“The very first thing they ask you, go right to their splash page and before anything, they want your social security number and some other personal information,” Gallagher said.

The company has an “F” rating with the BBB. Gallagher says attempts to reach anyone with Qxlonline has been unsuccessful. There have been at least five complaints in Virginia. They include threatening collection calls about loans consumers say they never applied for — and the company obtaining personal information then locking customers out of the website.

“This is really tragic because the victims in these things are just desperate,” said Gallagher.

He says there have been over 600 inquires about the company. Gallagher says a big problem, no one seems to know where the company is located. Victims have reported the company could be located in Pakistan and Australia.

“Wherever it is, you don’t want to be doing business with these people. It is an advance fee loan operation - an advance fee loan online is illegal in Virginia,” Gallagher told us.

On the website, there is no email or address information, only a phone number. We called and all you get is an automated message asking for your social security number. The BBB is not only consumer organization warning about Qxlonline - Dana Wiggins, with the Virginia Poverty Law Center and Virginia Partnership to Encourage Responsible Lending, says consumers should stay away from any company offering online payday loans.

“Bottom line people need to understand that online payday loans are not an easy road to money, they are and easy road to get scammed,” she said.

Beware: Online Payday Loan Traps

See the full story and watch the video

Get help if you are stuck in an internet payday loan