The Virginia House of Delegates signed off on a bill Monday that would allow vehicle title lenders to issue loans to out-of-state residents.
The industry has been regulated to the point of virtual non-existence in surrounding states, which has D.C. and Maryland officials worried about the bill’s potential effects.
Last year, the state voted to regulate how much lenders, who use car titles as collateral for loans with high interest rates, can charge clients, with the threat of repossession looming if people fall behind on payments.
The House passed the measure 51-47, and it will now go to the Senate – which already overwhelmingly approved its version of the bill – for consideration.
