The City of Staunton could help lead the way to reform the "PayDay Loan" industry. The city council is looking at a bill this week that would send a resolution to the State.

The state has visited the issue in the last two years, but both times nothing was done. Bruce Elder is hoping to make a difference and get the state to cap the interest rates of payday loans to 36 percent.

"People get trapped in the cycles of dept, sometimes owing thousands of dollars simply to have a few hundred dollars of spare cash one day," says Elder.

He was motivated to write a city resolution, after the general assembly tried and failed to pass a payday loan reform for the state. He's basing his resolution on a federal law that goes into effect October 1 that caps interest rates for those in the military.

Elder says, "Our question is, is it fair that military personnel get a 36 percent cap and civilian personnel don't? Why should there be two interest rates in the Commonwealth of Virginia?"

He doesn't want Staunton to be alone in this. He wants to start a grass roots movement with other areas.

"Every County Government , every Town Government, every Government in the Commonwealth, so we can get this out where other cities can consider this action," says Elder.

Delegate Chris Saxman says he's not sure if this plan will have any more luck than past attempts.

He says, "The current cap is $15 per $100 and that is adequate in my mind."

He also says he's all for some reform in the system, and it may be on the horizon.

"The Governor is convening with people on this matter and I look forward to seeing what those things are," says Saxman.