1. United States
2. Va.
3. Letter

This usury bill, S.B. 1252, would severely restrict access to credit for Virginia consumers by prohibiting banks from partnering with third-party service providers to offer loans above 12% interest. The intention to curb predatory lending is admirable, but the broad language impacts even legitimate lenders providing vital credit access. It captures any entity "assisting" or "arranging" loans over 12%, including marketing vendors, direct mail agencies, and fintech partners that banks rely on to efficiently reach borrowers online. This jeopardizes lending options like installment loans, business financing, and innovative financial products tailored to modern consumer needs. Consumers benefit from competition and choice in the credit market. Overly restrictive rate caps reduce available credit, disproportionately harming those who rely on alternative lending sources. While protecting Virginians is crucial, this bill goes too far by cutting off responsible lending avenues. I urge you to veto S.B. 1252 and preserve access to affordable credit for Virginia's residents and small businesses.