Business practices could soon be changing for payday lenders.
The Virginia Supreme Court ruled in favor of a Shenandoah County woman, who ended up having to pay more than $1,700 in interest on a $500 loan over a two-and-a half year period.
The Harrisonburg attorney who handled the case says the court ruled it was illegal for lenders to issue new loans immediately after the borrower repays.
"We took a look at what was happening, and it was our opinion at the time that this process of rolling her over from loan to loan was a renewal or a refinance that the statute prohibited," says Grant Penrod, an attorney with Hoover Penrod in Harrisonburg.
Penrod says about two dozen cases have been filed throughout the state of Virginia.
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