Payday Lenders Leaving Virginia

Wed, 13 May 2009

A leading payday lender has left Virginia following the implementation of new restrictions on payday loans . Check ‘n Go is to close its 68 Virginia outlets after the state limited payday loans to $500 and restricted the number of payday loans one person can take out to 10 per year. The number of payday loan stores in the state has fallen by 20 per cent – unsurprising when you consider that Check ‘n Go accounted for nearly one in ten. The lender is just one of five payday lenders giving up their payday licenses to the Virginia regulators. Whilst Check ‘n Go is leaving the state, others are staying but finding new, and potentially controversial, means of lending .

Check Into Cash, the country’s largest privately owned payday lender, has announced it is to close 19 of its 64 Virginia stores, and focus on another form of credit . It is to offer more expensive, lightly regulated open ended loans, which are managed like a line of credit, though fees on the loans are potentially unlimited. This could help to restore Check Into Cash’s profits, whilst there is no limit on the number of open ended loans a borrower may take out each year.
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