Bat Signal out for Wronged Consumers

Harmful lending practices on the part of certain car title lenders and internet payday lenders have fueled an outreach effort from the Virginia Poverty Law Center (VPLC) designed to increase awareness of illegal lending. Car title lending, an industry that came under regulation on October 1^st, 2010, requires Virginia lenders to be licensed.  Despite this implementation, only 7 out of the 23 car title lenders in Virginia had obtained licenses by October 1^st.  The VPLC has received calls through its Predatory Lending Hotline from borrowers of illegal loans.  These consumers had taken out loans from unlicensed car title lenders after October 1^st, and although the loans are illegal and unenforceable, borrowers are still being hounded to pay back these illegal loans.  The VPLC has also received calls from victims of internet loans, which are illegal in Virginia.  VPLC interns have hit the streets armed with flyers and information as part of an outreach campaign designed to promote the hotline to those who have received an illegal internet loan or a potentially illegal car title loan.