Virginia – A Borrower’s Guide to Payday Loans
• Be aware: Some payday lenders are now offering “lines of credit” or loans secured by your car title as an alternative to a payday loan. These loans are unregulated. The following laws DO NOT apply to installment and car title loans in Virginia.
- 1. The Payday Lender must give you at least two pay periods to repay your loan. If you are paid weekly or more often, the payday lender must give you at least 14 days to repay your loan.
- If you are paid every two weeks, your minimum loan term is 28 days.
- If you are paid twice a month, your minimum loan term is 31 days.
- If you are paid monthly, or use your monthly benefit payments to get your loan, your minimum loan term is 62 days.
- A payday lender cannot loan to you if you already have an unpaid loan from any payday lender.
- A payday lender may not threaten you with criminal prosecution for not paying your payday loan and the new law added penalties for payday lenders that violate this law.
- Payday lenders may not abuse or harass you if you don’t pay your loan back.
- A payday lender may not make you a loan on the same day that you paid a previous loan.
- Internet payday loans are illegal and unenforceable.
- Payday lenders may not loan to members of the military or their immediate family.
- You have the right to an extended payment plan and the lenders must tell you about this right.
- You must be given at least 60 days to repay the amount you owe in at least four equal installments.
- You only have the right to demand this once every 12 months.
- If you request a 5th loan in a 6-month period, you must be given the option of:
a. Paying the loan as usual and then no payday lender may make you a loan for at least 45 days.
b. Getting an Extended Term Loan, where you can pay at least four equal payments of the amount you owe over a term of at least 60 days. After you pay off the extended term loan, no payday lender may make you a loan for at least 90 days. You have the right to make partial payments on your loan.