[ad_1]
Opponents of payday loans fear the bill will pass the House.
Get quick cash based on hours already worked. There’s an app for that, and now, with the advent of this new financial technology product, legislators here in Richmond are starting to think about state regulation of this growing market.
James City County Republican Rep. Amanda Batten is introducing a bill to create new fintech regulations.
“Employees can use this service to access wages earned but not yet paid in the current pay cycle,” says Batten. “So this is not a loan. These are actually wages already earned.”
Not everyone shares the idea that access to earned wages is not a loan. Dana Wiggins of the Virginia Poverty Law Center worries that people will fall into the debt trap.
“The biggest problem people had with payday loans back then was that they all expired at once when you had to pay them back,” Wiggins explains. I was seen.”
The bill has passed the House, where it was approved in a partisan vote by a Republican-controlled panel. Senators are expected to consider a similar bill on Monday.
This report, presented by Virginia Public Radio, was produced with support from the Virginia Educational Association.
[ad_2]
Source link
