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Compare short-term loans in Virginia
New laws went into effect in 2021. Here's what you need to know.
When you have unplanned expenses and are on a tight budget, a payday loan could be helpful. Payday loans, a type of short-term loan, give you quick access to money when you need it. Read on to find out about the laws in Virginia and everything else you should know about how payday advances work.
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.
| Max loan amount | $2,500 |
| Annual interest rate | Up to 36% |
| Monthly maintenance fee | 8% of original loan amount, up to $25 |
| Loan term | 4 to 24 months |
| Rollovers allowed | None |
| Cooling-off period | Varies |
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).
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 payday loans 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 to 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 its 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 $5,000 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