Payday loans are legal in Virginia. All cash advance creditors, even those that do not have a store in Virginia, that issue loans to Virginia residents must be licensed. The law requires the check cash advance lenders to provide the following written notice to their clients: "A payday loan is not intended to meet long-term financial needs.” The loan agreement must list in a conspicuous manner the annual percentage rates and fees. Both the customer and the creditor must sign the loan agreement, and the borrower must be provided a duplicate copy of the contract. Cash advance businesses are not allowed to issue more than one loan to a consumer at any given time. Virginia law permits payday loan providers to resort to a private right of action against defaulting or delinquent borrowers. However, lenders are prohibited from instituting a criminal action.
A borrower can request up to $500 in payday loan funds.
The minimum loan term is 7 days.
Cash advance companies are prohibited from granting extensions or rollovers to their customers.
The maximum finance charges and fees that a check cash advance creditor can charge a borrower is 15% of the loan amount. The finance charge for a two-week loan in the amount of $100 is $15. A payday loan business can also charge a $25 NSF (non-sufficient funds) fee, in addition to $20 in collection costs.
The APR for a two-week loan valued at $100 is 390%.