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Updated: 2:25 PM Apr 21, 2008
Proposed Tax on Payday Lenders
ALEXANDRIA, Va. (AP) An Alexandria City Council member is proposing a hefty new tax on payday lenders operating in the city.
Posted: 11:02 AM Apr 21, 2008 |
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An Alexandria City Council member is proposing a hefty new tax on payday lenders operating in the city.
Under Justin Wilson's plan, payday and car-title lenders would face a business license tax of 58 cents for each $100 in gross receipts. That's up from the general rate for financial services firms of 35 cents per $100.
The higher tax rate would generate an estimated $13,000 annually. The proposal calls for directing that money to consumer education services for low-income people.
The industry is vowing to fight the measure. An attorney for one major lender has already threatened a lawsuit if the measure is passed.
Latest Comments
Posted by: PaydayLendingRepresentative
Location: Washington DC
on Apr 22, 2008 at 02:40 PM
Regulation like this does nothing to help consumers. It only increases the financial burden of making these small dollar loans to responsible working individuals in need. This drives up prices or even worse - forces lenders to not be able to make loans.
Posted by: Parent
Location: Valley
on Apr 21, 2008 at 07:28 PM
Absolutely brilliant! The "lenders" insist on extra-ordinarily high fees and interest rates, so the state is only duplicating onto them what they do to other folks. Seems very fitting and fair. If you insist on doing business in a particular way, then don't be surprised when it comes back to haunt you.
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