General Assembly to blame for relaxing usury laws

Staff

Published Tuesday, March 29, 2005

Editor, the News-Herald:

There is an item in the news about a group of people demonstrating against high interest charged for refund anticipation loans by a Virginia Beach based income tax preparation firm.

They are demonstrating against the wrong people. About two years ago the Virginia General Assembly changed the usury laws to allow money lenders, including credit card companies, to charge as much interest as they can get. As a natural result of this action the money lending vultures descended on Virginia.

All this was made possible because of contributions to politicians by lobbyists. It is said that the excessive interest affects mostly the poor who fall for the lure of quick money just as they do with the lottery.

There are two practical ways that this high interest can be avoided; 1. Do not go to a commercial income tax service company. There are many ways help in filing income taxes can be had free.

2. If you do have an income tax service do your taxes do not let them talk you into a refund anticipation loan. Just pay them their fee for filling out the returns and get out as fast as you can. If you sign up for a loan you only have yourself to blame when you are charged excessive interest.

Another state run scam designed to separate the poor from their money is the lottery. The lottery is a way for the state to get back many of the dollars paid out for welfare. Someone has said that your chances of winning the lottery are the same whether you buy a ticket or not.

Macon N. Sanford

Suffolk

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