Virginia 2025 Regular Session

Virginia Senate Bill SB1252

Introduced
1/8/25  
Refer
1/8/25  
Report Pass
1/27/25  
Engrossed
1/30/25  
Refer
2/6/25  
Report Pass
2/13/25  
Engrossed
2/18/25  
Engrossed
2/19/25  
Engrossed
2/19/25  
Enrolled
3/7/25  

Caption

Financial institutions; loans and legal rate of interest.

Impact

The impact of SB1252 on state laws is significant as it revises the Code of Virginia related to lending practices. By explicitly capping the interest rate for loans at 12%, the bill seeks to eliminate potential exploitation of borrowers through predatory lending practices. This change works to safeguard vulnerable populations who might otherwise fall prey to high-interest loans while setting clear guidelines for financial institutions operating within the state.

Summary

Senate Bill 1252 amends existing regulations concerning financial institutions in Virginia, specifically targeting the legal rates of interest that can be charged on loans. The bill enacts stricter provisions to ensure that the maximum allowable interest rate does not exceed 12% per year. This legislation is aimed at providing clarity and protecting consumers from exorbitant interest charges that could arise from various types of loans, aligning definitions of financial institutions and reinforcing the legal framework around loan agreements.

Sentiment

The sentiment around the bill appears to be generally positive, especially among consumer advocacy groups who view it as a necessary step in consumer protection. However, there might be concerns from financial institutions regarding the potential limitations on their ability to set competitive rates. Thus, while the sentiment is largely supportive, it is accompanied by some apprehension about how this could affect the lending market in Virginia.

Contention

Notable points of contention in discussions surrounding SB1252 relate to the balance between protecting consumers versus ensuring adequate access to credit. Some stakeholders argue that a stringent cap on interest rates may drive certain lenders away from the market, thereby reducing the availability of loans for high-risk borrowers who typically pay higher interest rates. This raises questions about the trade-off between consumer protection and access to credit, indicating a robust debate on the implications of such regulations.

Companion Bills

No companion bills found.

Previously Filed As

VA SB6008

Gaming commerce and development in the Commonwealth; regulation, report, penalties.

VA SB6005

General appropriation act; amends items related to state office rent rate, Medicaid contracts, etc.

VA HR712

Commending Carter Bank & Trust.

VA SB6003

Va. Military Survivors and Dependents Education Program, etc.; repeal of modifications, report.

VA SB6006

Va. Military Survivors and Dependents Education Program, etc.; repeal of modifications, report.

VA SR630

Celebrating the life of Randolph Nicklas Reynolds, Sr.

VA HR716

Commemorating the life and legacy of Sallie Chew Baker.

VA HR783

Commending Alpha Phi Alpha Fraternity, Inc., and the Virginia Association of Chapters of Alpha Phi.

VA SB6007

Virginia Gaming Commerce Regulation Act; established, penalties, report.

VA HB6003

Va. Military Survivors and Dependents Education Program & related programs; repeal of modifications.

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