Legislation # 07-0565 Enactment Number none
Type Resolution Effective Date none
Introduction Date 10/10/2007
Title Resolution Supporting Placing Restrictions on or Eliminating Predatory Lending in the Commonwealth of Virginia.
 
Legislation History 07-0565
DateNotice Of ActionDescription
10/24/2007 Approved items 1 through 9 on the consent agenda.
10/24/2007 Council discussed this matter. This item was placed on the agenda at the request of Counciman Sapp and appears on the evening consent agenda for approval.
10/10/2007 Received By Clerk's Office
 
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Legislation Text 07-0565

 

City of Hampton, Virginia

Resolution

22 Lincoln Street

Hampton, VA 23669

www.hampton.gov

 

File Number: 07-0565

 

Enactment Number: -

 

Resolution Supporting Placing Restrictions on or Eliminating Predatory Lending in the Commonwealth of Virginia.

 

 

WHEREAS, the City of Hampton has vocally supported past efforts to eliminate or restrict predatory lending in the Commonwealth of Virginia, and

 

WHEREAS, while short-term loans are important, it is equally important that consumers are not taken advantage of through inadequate state laws governing these practices, and

 

WHEREAS, payday lending is a fairly well recognized statewide problem, and

 

WHEREAS, it is equally important that state law provide adequate protections for consumers so that they are not charged exorbitant interest rates to obtain necessary cash-flow, and

 

WHEREAS, congress has recently adopted policies against predatory lending for military servicemen and women, and under these policies, money lenders will be prohibited from charging military members and their families more than 36 percent interest on consumer loans, and

 

WHEREAS, federal law now also sets strict guidelines for military members on the disclosure of loan information, and prohibits automatic loan renewals, refinancing or consolidation without new documents and disclosure, and penalties for violators will include fines and imprisonment, and

 

WHEREAS, a number of pieces of legislation were filed during the 2007 General Assembly session to place restrictions upon or eliminate predatory lenders, and

 

WHEREAS, while none of those pieces of legislation were successful, it is assumed that a number of bills will be introduced during the 2008 General Assembly session.

 

THEREFORE BE IT RESOLVED that the City of Hampton supports the elimination of predatory lenders in the Commonwealth of Virginia.

 

BE IT FURTHER RESOLVED that, absent the ability of the Commonwealth to eliminate these lenders, the City of Hampton supports placing restrictions upon their operation, to include capping the amount of allowable interest charged by these entities to 36%.

 

Adopted at the regular meeting of the City Council of the City of Hampton, Virginia held on October 24, 2007.

 

 

 

Signed by ____________________________ Date _________________

Ross A. Kearney, II, Mayor

 

 

 

 

Attested by ____________________________ Date _________________

Katherine K. Glass

Clerk of the Council