Compare short-term loans in Virginia

Virginia has a number of laws to regulate payday loans and installment loans, otherwise known as short-term loans. Before you borrow, ensure your lender is legit — and learn more about the laws in place to keep you safe.

Virginia short-term loan laws

Virginia Title 6.1, Chapter 18 governs short-term lending in the state. In 2021, Virginia updated these laws to further regulate payday loans and installment loans.

Cooling-off period in Virginia

Virginia has set regulations on how long you need to wait between loans. The exact timing depends on your previous borrowing history.

The standard cooling-off period is 24 hours. However, lenders in Virginia are prohibited from offering loans if you currently have a payday loan or have taken out five payday loans in the last 45 days.

Lenders are also prohibited from offering loans if you entered an extended payment plan in the last 90 days or took out an extended term loan in the last 150 days.

Note that you can only have one payday loan in Virginia at a time.

Right to cancel

Virginia law states that you can cancel your loan before the close of the business day after you borrow. To do this, you’ll simply need to return your loan funds to the lender. Your lender can’t charge you any fees for canceling.

How much do short-term loans cost?

Lenders are allowed to charge an annual interest rate of up to 36% and a monthly maintenance fee of 8% of your loan amount, up to $25. The total cost of your loan will depend on how much you borrow and your loan term.

In addition, lenders can charge a late fee of up to $20 and a non-sufficient funds (NSF) fee of up to $25 if you aren’t able to make a payment or your check bounces.

How to apply

When you visit the lender’s storefront, you’ll need to bring proof of employment, proof of your address and a blank check. You’ll also need to provide your Social Security number and be willing to fill out an application that asks for personal details.

Once you’re finished, an employee will process your application and you’ll know within a few hours if you’ve been approved for the loan.

What should I consider before taking out a loan?

Payday loans can be expensive if you don’t repay them right away — and car title loans in Virginia can be even more costly. Because of this, they should be used as a last resort.

If you have ongoing financial issues, you could apply for one of the many assistance programs in Virginia. Programs like Energy Assistance, the Supplemental Nutrition Assistance Program (SNAP) and 2-1-1 Virginia can all be helpful when you’re trying to balance your budget.

Bottom line

A payday loan can help you afford unexpected expenses between paychecks. And knowing the laws will help you avoid disreputable lenders. Always be sure you can repay your loan, and don’t hesitate to ask questions or report illegal behavior when you see it.

Worried you can’t afford to pay back a payday loan? Consider these low-cost alternatives available in Virginia instead.

Frequently asked questions

A few more rules and regulations surrounding short-term loans in Virginia.

How often can I get a repayment plan?

There is no limit to how often you can use a repayment plan. Lenders can’t charge you for this, but you must repay the outstanding loan amount in four equal installments within a 60-day period. But if you do choose a repayment plan, you won’t be able to borrow a new payday loan for 90 days.

Is there a cooling off period between loans?

Yes. In order to protect consumers, Virginia has different cooling off periods depending on how many loans you’ve taken out.

• You must wait one day after payment of your loan.
• You must wait 45 days after your fifth loan within a 180-day period.
• You must wait 90 days after going on a payment plan.

Can I refinance my loan?

No. Virginia law doesn’t allow for individuals to roll over or refinance a short-term loan.

Can I have my funds deposited directly into my account?

No. Your loan must be either cash or a check from the lender.

Can a lender draw a payment directly from my bank account?

No. Virginia law only allows payday lenders to cash a check written to them for the total amount.

Where can I file a complaint about a payday lender?

You should contact with the Virginia Bureau of Financial Institutions. You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) or the Federal Trade Commission (FTC).