Senate Majority Leader Richard L. Saslaw, D-Fairfax, says it wasn't a message. It looked like one.
New restrictions on payday lending cleared the Virginia Senate on a vote of 39-0 yesterday. They would prevent lenders from skirting a 2008 clampdown on high-cost, instant loans.
Once a forceful ally of the lenders, Saslaw proposed additional rules for money stores because he is angry over their perceived end-run on last year's legislation, which took effect only 30 days ago.
"I don't believe in sending messages," said Saslaw. "We corrected a problem, and we're not done yet."
The House of Delegates -- the next stop for the Saslaw bill -- is considering a similar measure by Del. G. Glenn Oder, R-Newport News.
Because the Saslaw and Oder measures are written differently, lobbyists for payday lenders may have an opportunity to promote impasse, thus preserving the industry's latest controversial practice.
Oder alluded to such concerns, saying, "I'm trying to get this egg to the frying pan without cracking it in my hand."
With the approval of the State Corporation Commission, three-quarters of Virginia's 800 cash parlors can offer open-ended loans that are more profitable than payday loans, now capped at $500.
The open-ended loans operate much like lines of credit and typically are limited to $750. Their interest rates are potentially unlimited.
"Can I toughen it up? Yes," Saslaw said of his bill, which also prevents lenders from setting up affiliates to exclusively offer open-ended loans. "Do I want to run everyone out of town? No."
Contact Jeff E. Schapiro at (804) 649-6814 or jschapiro@timesdispatch.com.
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