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RESOLUTION REQUESTING THE GENERAL ASSEMBLY AND
GOVERNOR OF VIRGINIA TAKE ACTION TO PREVENT
EXPLOITATIVE PAYDAY LENDING PRACTICES
IN THE COMMONWEALTH
WHEREAS, the Board of Supervisors of the County of Frederick, Virginia, represents
the citizens of the County of Frederick, Virginia; and.
WHEREAS, this Board is concerned over what are perceived to be exploitative payday
lending practice in the County of Frederick and elsewhere in the Commonwealth,
including practices which may exploit the dedicated, brave men and women of our
Nation's armed forces who are deployed within the United States and various parts of the
world in the cause of freedom and securing our Nation; and
WHEREAS, this Board, by adopting this resolution, is expressing the collective
_ sentiments of the citizens of Frederick County that the General Assembly and Governor
of Virginia should take action to prevent further exploitative payday lending practices;
and
WHEREAS, it is vital that the General Assembly and the Governor of Virginia give their
earnest attention to these matters at the next regular session of the General Assembly and
enact laws that will prevent further exploitative payday lending practices.
NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County
of Frederick, Virginia, that the General Assembly and the Governor of the
Commonwealth of Virginia are requested to take action in connection with the next
regular session of the General Assembly of Virginia to enact laws that will prevent
further exploitative payday lending practices, including but not limited to:
1. Enactment of an annual interest rate cap of 36 %for any consumer loans
made in the Commonwealth of Virginia;
2. Prohibition of the use of a personal check or other method by a creditor to
gain access to a consumer's bank account or method to gain title to a
consumer's motor vehicle as collateral for a payday loan; and
3. Enactment of supplementary and complementary provisions which mirror
the provisions of what is commonly referred to as the Talent- Nelson
Amendment (Senate Amendment 4331), entitled "Terms Of Consumer
Credit Extended to Service member or Service member's Dependent and
referenced on page S6352 of the June 22, 2006 Congressional Record —
Senate, a copy of which is annexed to and incorporated by reference in
this Resolution.
Adopted this 14th day of November, 2007.
VOTE:
Richard C. Shickle Aye Gene E. Fisher Aye
Bill M. Ewing Aye Philip A. Lemieux Aye
Charles S. DeHaven Aye Barbara E. Van Osten Ave
Gary W. Dove Aye
Resolution No.: 024 -07
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John Rr y, Jr., erk
TO: Board of Supervisors �,
FROM: John R. Riley, Jr., County Adminis t
SUBJECT: Payday Lender Resolution
DATE: October 26, 2007
COUNTY of FREDERICK
Cahn R. Reley, ,Ir.
Coanty Administrator
540/665 -5666
Fax 540/667 -0370
E -mail:
jriley @co.frederick.va.us
Attached please find a resolution requesting the General Assembly and Governor take action to
prevent exploitative payday lending practices in the Commonwealth. As you might recall, the
Board directed staff to reseazch this issue as well as the County's ability to cap interest rates
charged by these types of businesses. As slated at your October meeting, there exists no state
enabling legislation to permit localities to cap interest rates charged by payday lenders; however,
the General Assembly is the body to enact any rate caps or other rules relative to this industry.
The attached resolution mirrors that originally adopted by the City of Staunton and circulated to
other Virginia localities. The proposed resolution requests the General Assembly and Governor
take the following actions relative the payday lenders:
Enact an annual interest rate cap of 36 %for any consumer loans made in the
Commonwealth of Virginia;
2. Prohibit use of a personal check or other method by a creditor to gain access to a
consumer's bank account or method to gain title to a consumer's motor vehicle as
collateral for a payday loan; and
3. Enact supplementary and complementary provisions which mirror the provisions
of what is commonly referred to as the Talent - Nelson Amendment (Senate
Amendment 4331), entitled "Terms Of Consumer Credit Extended to Service
member or Service member's Dependent and referenced on page 56352 of the
June 22, 2006 Congressional Record — Senate, a copy of which is annexed to and
incorporated by reference in this Resolution.
Should the Board wish to endorse this position, action on this resolution would be appropriate.
Should you have any questions, please do not hesitate to call me.
JRR/jet
Attachment
]07 Forth Kent street Winchester, Virginia 2 260 1 -5000