RICHMOND — A bill that bans the type of online loans that hit Virginians with interest levels often surpassing 900% passed a vital first hurdle in the General Assembly on Thursday.

The legislation focusing on the internet companies additionally would slash fees levied for payday, vehicle name as well as other short-term loans.

It passed the homely house Labor and Commerce Committee 14-8. A bill that is similar sponsored by state Sen. Mamie Locke, D-Hampton, comes ahead of the comparable Senate committee later on this month.

The General Assembly has rejected efforts to chip away at the loopholes in existing rules and caps on interest rates — some of which translate to triple-digit interest rates for more than a decade. Continue reading →