Efforts to place modest reforms on the
payday lending industry died today after negotiations broke down in
the General Assembly's final hours.

Senator Richard Saslaw says industry representatives, consumer
advocates and Governor Tim Kaine couldn't come to an agreement.

At issue were restrictions that would have protected those who
use the short-term, high interest loans while still allowing payday
lenders to stay in business.

Saslaw's industry-backed bill would have placed limits on the
number of loans individuals could have at one time.

It also would have required lenders to give overextended
borrowers more time to pay.

Opponents blamed the industry for the breakdown.

The Reverend Douglas Smith, a member of a coalition opposed to
payday lending, said the bill was killed because the industry did
not want what he called "real reform."
(Copyright 2007 by The Associated Press. All Rights Reserved.)