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Dear Virginia Lawmaker,
On behalf of FreedomWorks, a national grassroots organization with thousands of members in Virginia, I am writing to urge you to avoid passing new regulations or restrictions on the payday lending industry.
As you know, the General Assembly is currently considering 20 different bills to implement cumbersome regulations that would restrict or effectively eliminate the use of payday advances. These regulations would seriously limit financial choices for Virginians, and should not be enacted by the General Assembly.
Payday advances are a specialty product and are unsecured and high-risk, and as such may carry higher interests rates than a typical credit card or a line of credit from a bank. But for thousands of Virginians these small, short-term loans provide often urgently needed credit that might not be available from other sources.
It is also important to note that banning the legal payday lending industry may simply drive short-term or emergency lending into the shadows, where no legal or commercial protections exist.
FreedomWorks believes that consumer education is the best approach to ensuring that payday lending is used responsibly. We urge you to defend consumer choice and avoid passing new regulations on the payday lending industry.