Gilmore Blames Warner for Payday Loan Problems
Former governor James S. Gilmore (R) praised the House of Delegates today for their efforts to stiffen regulations on payday lenders while taking a not-so-subtle jab at his potential rivial in this year's U.S. Senate race, former governor Mark R. Warner (D).
"It is no secret that payday lending stores opened under the leadership of Mark Warner and the bill he signed into law,'' Gilmore said in a statement. "Their loans are deceptive and they should at a minimum be held to the same standards as other small-loan lenders operating in Virginia. Mark Warner's decision to adopt this policy was wrong and ultimately the people of Virginia have rejected it."
The legislature has been struggling for years to find a way to further regulate the industry whose customers take out loans against a paycheck.
It passed the Payday Loan Act in 2002 to license and regulate the industry, which Warner signed into law. But critics say the industry has exploded, leaving thousands of Virginians in a cycle of debt they cannot escape because of the high interest rates.
"Mark Warner's decision to adopt this policy was wrong and ultimately the people of Virginia have rejected it," Gilmore said.
Kevin Hall, a Warner spokesman, noted that the bill passed in 2002 with overwhelming support among Republicans in the legislature. Warner also called for a study to measure the impact of the new law but the General Assembly rejected it on essentially a party-line vote, Hall said.
"Governor Warner is pleased to see the legislature moving forward on additional legislation and would be supportive of a cap that is fair to working people," Hall said.
February 5, 2008; 5:57 PM ET
Categories: Anita Kumar , Election 2008/U.S. Senate , General Assembly 2008 , James Gilmore III , Mark Warner
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