Strome Business Minute With Dr. Jeff Tanner

Virginia is one of the laxest states when it comes to payday loans, according to a recent Pew Research report. The report examined the effects of such loans and found that one in eight Virginians have a vehicle repossessed every year, one of the highest rates in the country. And four out of five repossessed vehicles are sold because the owner can’t afford to reclaim them. Virginia’s small loan laws are among the weakest in the country, with no limit on interest rates, which leads to three times the interest charged in other states. Other states like Ohio and Colorado have more stringent laws, reducing borrowers’ costs and protecting consumers who are unable to save sufficient amounts must borrow small amounts when emergencies arise.