Va. House Reaches Compromise on Payday Loan Reforms

Virginia House leaders announced today a deal to reform the payday loan industry that would include capping the interest rate on loans and limiting the number of loans a customer can take out at a time.

The announcement was made by Republicans and Democrats, including House Speaker William J. Howell (R-Stafford).

"Reaching a compromise that would provide strong consumer protection while still making his service available to Virginians seemed remote when this session began," said Del. Terry G. Kilgore (R-Scott), chairman of the House Commerce and Labor Committee.

Officials with the payday loan industry said that they were concerned with the proposal and that it might drive their stores out of the state.

Several other bills will be heard in a Senate committee this afternoon. The House will consider the compromise this week.