Just like the rest of the United States, Virginia is enjoying a growth industry payday loans. There are currently 730 licensed lenders offering immediate solutions for those facing short-term financial problems.
Ranging from $100 to $500, payday loans are usually paid back when the borrower next receives his or her wages. Ordinarily, financial institutions require a credit check before they lend money, but not so with payday loan companies. All they generally require is proof of regular income from a steady occupation.
Imagine that you have encountered an unexpected financial difficulty such as the bill for repairs on your car. You don't have the money to pay it off right now, and you're not due to receive your next paycheck for another week. This is where a cash loan company can step into the breach by giving you the money you need, usually within 24 hours.
Virginia's specific laws mean that you can take a loan out against a post-dated check made out by you to the lending company. The check will cover the loan plus any associated fees. When the cash is checked by the lender, the fees are kept and the balance is put straight onto your loan.
There are other state laws designed to defend the rights of all those who might get involved with these loans, be they lenders or borrowers. These laws insist upon a minimum 7 day cash loan period, a 15% limit on all the fees associated with a loan, a 6% fee on late payments, no rollovers (follow-up loans taken out to cover the costs of the original loan), a $25 returned check fee allowed, and no more than $250 of attorney fees and court costs permitted.
It's interesting to note that Virginia differs from certain other states in not allowing rollovers.