1. United States
2. Va.
3. Letter

The proposed usury bill in Virginia, SB 1252, is well-intentioned but would ultimately deprive consumers of access to credit. The bill aims to prevent predatory lending practices by out-of-state online lenders, but its broad language would effectively prohibit all banks, including Virginia banks, from working with third-party vendors to offer loans exceeding 12% APR. This would severely limit credit options for Virginia residents. Banks, especially community banks, rely on fintech partnerships to provide innovative, affordable lending products. Online lending has expanded access to credit through increased competition and convenience. While regulating predatory practices is important, this bill goes too far by essentially banning legitimate bank-fintech partnerships that have provided millions in responsible credit nationwide. Rather than cutting off credit access, the legislature should explore more targeted measures to rein in truly abusive lending while preserving the benefits of fintech-enabled lending for Virginia consumers. Sweeping restrictions will only hurt those they aim to protect by depriving them of crucial borrowing options. Protecting consumers necessitates preserving their right to access responsible credit on fair terms. Please tell the governor to veto this bill.