Virginia legislators allow payday lenders to charge annual interest rates of almost 400 percent, but they can’t threaten criminal prosecution. Either Gail or Donald would get another loan every month that year at several payday stores, taking out 12 total to pay the other loans off. Donald told three lenders that he and his wife couldn’t pay back their last loans. That same day, Donald sent a letter to the Smithfield Checksmart, explaining that he didn’t have to pay anymore because of the Social Security exemption. read more

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