Pressure Mounts on Va. Payday Lenders

The industry supported a bill, sponsored by Saslaw, that called for other changes. Among the proposals: a database of borrowers, a limit on outstanding loans to three per customer, an extended payment plan for some borrowers, a restriction on taking out a new loan the same day another is paid off and signs in stores listing other ways to get small loans through nonprofit organizations.

Fulmer, with Advance America, called the bill a "reasonable compromise" that aimed to protect consumers while allowing them access to needed loans. "It was left on the table," he said. "Hopefully we'll go back to the General Assembly again, roll up our sleeves and find real reform."

Saslaw has said he will not sponsor the bill again next year. He did not return phone calls last week.

The Community Financial Services Association has imposed some changes on its members. It is allowing some customers more time to pay off loans. It has also begun to require member companies to use poster-size displays to disclose fees and has started a Web site to advise consumers on responsible uses of payday advances.

Kaine said recently that he hopes the General Assembly will consider payday lending industry reform, possibly a repeal of the 2002 law. The governor's staff tried to broker a compromise over the summer, but the consumer groups, most of which are demanding a 36 percent cap, refused to participate in talks.

"There is far greater unity this year," Del. G. Glenn Oder (R-Newport News) said. "In the past, there has always been a cluster of people, half saying yes and half saying no."

Staff researcher Meg Smith contributed to this report.