If you’re short on funds and looking to borrow a small amount of cash to get by between paychecks, you might be considering a payday loan. This guide will help you navigate payday lending in Virginia.
What are the laws about payday loans in Virginia?
Payday lending is legal in Virginia. Virginia Code Ann. §§ 6.2-1800 et seq., titled payday lenders, governs all aspects of payday lending in the state. No business or individual can provide payday loans to residents of this state without obtaining a license from the Virginia State Corporation Commission. A lender can’t provide a payday loan online because the application requires individuals to hand over their bank account information–so avoid any lender that claims to offer an online loan.
Here are the basic rules surrounding payday loans:
Maximum loan amount: $500
Loan term: Two or more pay periods
Total loans: You can only have one outstanding loan at a time
Financing fees: 36% annual interest, a $5 verification fee and 20% of the principal
Finance charge: A 14-day $100 loan costs $26.38
APR: A 14-day $100 loan has an APR of 687.76%
Collection costs: $25 non-sufficient funds (NSF) fee, court costs and reasonable attorney’s fees ($250 or less)
You can cancel your loan by repaying the total borrowed amount by the end of the business day after you receive your funds. This means if you borrow money on a Monday, you can cancel your loan until the lender closes on Tuesday.
Virginia lawmakers enforcing online payday loan laws
There are lenders online that sidestep the law and offer payday loans to residents of Virginia. Lawmakers are rallying together to stop this predatory practice, but it helps to know that online lending is banned in the state. If you’re browsing online or comparing lenders, remember that you can’t apply, even if it’s more convenient. This will help enforce the laws and prevent you from taking out a loan with huge interest rates–and giving lenders access to your checking account.
Here are some lender options for payday loans
Check the websites of any providers you’re interested in to confirm they operate in Virginia. Remember that online lending is illegal in Virginia so you must visit a storefront if you want to take out a payday loan.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Here’s how Virginia residents can apply for payday loans
Applying for payday loan is easy, but they can be very expensive. Because of this, all lenders will require that you have a regular source of income, be at least 18 years old and a citizen or permanent resident of the US.
When you visit the lender’s storefront, you’ll need to bring proof of employment or benefits (if the lender allows it), proof of your address and a blank check. You’ll also need to know 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.
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.
A payday loan can be a good way to afford unexpected expenses between paychecks. Knowing the laws will help you avoid disreputable lenders. Always be sure you can repay your loan, and don’t hesistate 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.
Do you have any more questions about payday loans in Virgina?
You may receive a payment plan once every 12 months. Lenders can’t charge you for this, but you must repay the outstanding loan amount in 4 equal installments within a 60-day period.
Yes. In order to protect consumers, Virginia has different cooling off periods depending on how many loans you’ve taken out.
You must wait 1 day after payment of your loan.
You must wait 45 days after your 5th loan within a 180-day period.
You must wait 90 days after going on a payment plan.
No. Virginia law doesn’t allow for individuals to roll over or refinance a paday loan.
No. Your loan must be either cash or a check from the lender.
No. Virginia law only allows payday lenders to cash a check written to them for the total amount.
You should contact with the Virginia Bureau of Financial Institutions.
Elizabeth Barry is Finder's global fintech editor. She has written about finance for over six years and has been featured in a range of publications and media including Seven News, the ABC, Mamamia, Dynamic Business and Financy. Elizabeth has a Bachelor of Communications and a Master of Creative Writing from the University of Technology Sydney. In 2017, she received the Highly Commended award for Best New Journalist at the IT Journalism Awards. Elizabeth's passion is writing about innovations in financial services (which has surprised her more than anyone else).
I’d like to know if it is illegal in Virginia to have bussinesses do on line loans . Can they take you to court for non payment if it wasn’t done in store front and it wasn’t even me
Getting multiple pay day loan depends on the lender and your state of residence. Generally, you often need to meet more tough criteria than when you applied for your first loan because a second short-term loan is more of a risk for the lender and a greater financial burden to the borrower.
Lenders will want to ensure you will be able to repay the loan. To do this, they will review your current financial situation and look at multiple factors, which can include your credit history, what payments you make on your current loan, your current employment and your income. If you already have a lot of debt obligations or you lost your job after you took out your first short-term loan, you could have trouble qualifying.
However, since each lender has their own regulations when it comes to reloans, it’s best to still speak directly with your lender so they can advise you further on any possibilities of you getting approved for another loan.
I hope this helps. If any other questions arise, please feel free to contact us at any time.
Cooling off periods depend on your payday loan history. In a normal scenario, you can get a new payday loan one day after you repay the last one. If you take five payday loans within 180 days, a cooling off period of 45 days applies. This increases to 90 days if you end up repaying a payday loan through a payment plan.
I have a loan out now that is due next week. That will be my 5th loan so that company told me I’ll be on a cool off period for 45 days. Will it be that way all across Virginia at all the pay day loan companies? Or I can go to another one to get a loan after making the payment the next day ?
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I’d like to know if it is illegal in Virginia to have bussinesses do on line loans . Can they take you to court for non payment if it wasn’t done in store front and it wasn’t even me
Hi Joe,
Thanks for getting in touch with Finder!
According to our page, online lending is illegal in Virginia so you must visit a storefront if you want to take out a payday loan.
Hope this clarifies!
Best,
Nikki
Is NHcash a legal loan company in VA?
Hi Carol,
Thanks for leaving a question on finder.
NH Cash is available for residents in VA. For all your other loan options in VA, please refer to the table above.
Please send me a message if you need anything else. :)
Cheers,
Joel
If you already have a payday loan out can you take another one out even if the first one is not due yet? If so do you have to go to the same place
Hi Angela,
Thank you for contacting Finder.
Getting multiple pay day loan depends on the lender and your state of residence. Generally, you often need to meet more tough criteria than when you applied for your first loan because a second short-term loan is more of a risk for the lender and a greater financial burden to the borrower.
Lenders will want to ensure you will be able to repay the loan. To do this, they will review your current financial situation and look at multiple factors, which can include your credit history, what payments you make on your current loan, your current employment and your income. If you already have a lot of debt obligations or you lost your job after you took out your first short-term loan, you could have trouble qualifying.
However, since each lender has their own regulations when it comes to reloans, it’s best to still speak directly with your lender so they can advise you further on any possibilities of you getting approved for another loan.
I hope this helps. If any other questions arise, please feel free to contact us at any time.
Cheers,
Danielle
i just lost my job and i have poor credit but i need 5000 dollars what loan could i qualify for?
Hi Ronnie,
Thanks for your question.
We do have a list of loans you may qualify for. Kindly note that the amount that you can borrow depends on your state of residence.
Please review the eligibility criteria and the terms and conditions of the loan before submitting your application.
Cheers,
Anndy
During the cooling off period am I allowed to apply for a payday loan in another store?
Hi Vic,
Thank you for your inquiry.
Cooling off periods depend on your payday loan history. In a normal scenario, you can get a new payday loan one day after you repay the last one. If you take five payday loans within 180 days, a cooling off period of 45 days applies. This increases to 90 days if you end up repaying a payday loan through a payment plan.
I hope this information has helped.
Cheers,
Harold
I have a loan out now that is due next week. That will be my 5th loan so that company told me I’ll be on a cool off period for 45 days. Will it be that way all across Virginia at all the pay day loan companies? Or I can go to another one to get a loan after making the payment the next day ?
Hi Chanel,
Thank you for your inquiry.
Yes. In order to protect consumers, Virginia has different cooling off periods depending on how many loans you’ve taken out.
I hope this information has helped.
Cheers,
Harold