April 2020: As A State Senator, Jen Kiggans Voted Against The Virginia Fairness In Lending Act, Which Fought Predatory Lending

Kiggans Voted Against Virginia Fairness In Lending Act. In April of 2020, Kiggans voted against SB 421, which “Replaces references to payday loans with the term ‘short-term loans.’ The measure caps the interest and fees that may be charged under a short-term loan at an annual rate of 36 percent, plus a maintenance fee; increases the maximum amount of such loans from $500 to $2,500; and sets the duration of such loans at a minimum of four months, subject to exceptions, and a maximum of 24 months. Short-term loan licensees are required to make a reasonable attempt to verify a borrower's income and may not collect fees and charges that exceed 50 percent of the original loan amount if such amount is equal to or less than $1,500 and 60 percent of the original loan amount if such amount is greater than $1,500 […] A violation of these provisions is made a prohibited practice under the Virginia Consumer Protection Act. The measure amends provisions of the Consumer Finance Act to, among other things, allow licensed lenders to use the services of access partners and establish requirements that loans be between $300 and $35,000; be repayable in substantially equal installment payments; have a term of no fewer than six and no more than 120 months; charge not more than 36 percent annual interest and a loan processing fee; and require licensees to post a bond. The measure prohibits credit service businesses from advertising, offering, or performing other services in connection with an extension of credit that has an annual interest rate exceeding 36 percent, is for less than $5,000, has a term of less than one year, or is provided under an open-end credit plan.” The bill passed 22-18 and became law on April 4th, 2020. [Virginia General Assembly, SB 421, 4/22/20]

• Fairness In Lending Act Fought Predatory Lending In Short-Term Loans, Car Titles, And Other Lines Of Credit. “In an effort to fight predatory lending, loans with unfavorable terms to the borrower, the House of Delegates and Senate each voted recently to pass bills that will alter laws related to consumer lending. That includes payday loans, which would be renamed short-term loans, car title loans and open-end credit, such as credit cards and other lines of credit.” [WHSV 3, 2/11/20]
• Fairness In Lending Act Fixed Patchwork Of Laws That Allowed Financial Harm, Repeated Borrowing, And Car Repossessions. “The law rationalizes what had been a disparate regulatory structure, governed by a patchwork of laws that allowed payday and auto title loans with unaffordable payments and unnecessarily high costs, and exposed borrowers to financial harm, including repeated borrowing and high rates of vehicle repossession.” [Pew Trusts, 10/22/20]
• Fairness In Lending Act Improved Consumer Outcomes With An Estimated Total Consumer Savings Exceeding $100 Million Annually. “Virginia lawmakers balanced concerns about the availability of small-dollar credit with the urgency of stopping harmful lending practices, a challenge that officials in other states also have struggled with. Virginia’s evidence-based approach builds on successful reforms previously enacted in Colorado and Ohio that maintained widespread access to credit and measurably improved consumer outcomes by closing loopholes, modernizing outdated statutes, and prohibiting balloon payments […] Pew’s analysis of the act confirmed that, under the legislation, lenders can profitably offer affordable installment loans with structural safeguards, saving the typical borrower hundreds of dollars in fees and interest with estimated total consumer savings exceeding $100 million annually.” [Pew Trusts, 10/22/20]

Kiggans Refused To Answer A Local Reporter’s Questions About Why She Voted Against Cracking Down On Payday Lenders And Got Up While Still Attached To Her Mic And Walked Away

WAVY: “Try As We Did In Our Allotted Five Minutes To Talk To Her, Kiggans Refused To Answer 10 On Your Side’s Inquiry And To Explain Why She Voted For Senate Bill 421.” “VoteVets then slams State Senator Jen Kiggans on a vote she made in April 2020. ‘Kiggans voted against cracking down on predatory lenders and their unfair practices that especially hurt military families.’ That is TRUE. Kiggans did vote against Senate Bill 421 that among other measures would cap the annual interest rate for predatory or short-term loans at 36%. Try as we did in our allotted five minutes to talk to her, Kiggans refused to answer 10 On Your Side’s inquiry and to explain why she voted for Senate Bill 421. […] And then we heard the five-minute timer go off, at which point Senator Kiggans gets up and walks away, dragging the microphone still strapped to her dress. She never answered the question about SB 421.” [WAVY, 10/25/22]

• WAVY: “We Heard The Five-Minute Timer Go Off, At Which Point Senator Kiggans Gets Up And Walks Away, Dragging The Microphone Still Strapped To Her Dress. She Never Answered The Question About SB 421.” “VoteVets then slams State Senator Jen Kiggans on a vote she made in April 2020. ‘Kiggans voted against cracking down on predatory lenders and their unfair practices that especially hurt military families.’ That is TRUE. Kiggans did vote against Senate Bill 421 that among other measures would cap the annual interest rate for predatory or short-term loans at 36%. Try as we did in our allotted five minutes to talk to her, Kiggans refused to answer 10 On Your Side’s inquiry and to explain why she voted for Senate Bill 421. […] And then we heard the five-minute timer go off, at which point Senator Kiggans gets up and walks away, dragging the microphone still strapped to her dress. She never answered the question about SB 421.” [WAVY, 10/25/22]

Kiggans Was Asked Multiple Times By A Reporter Why She Voted Against Senate Bill 421, Which Would Have Cracked Down On Payday Lenders, She Refused To Answer And Walked Off While Still Attached To Her Mic. HOST: “But back to Senate Bill 421, why did you vote against the Virginia Fairness and Lending Act which you did?” KIGGANS: “that bill is not even referenced in the ad.” HOST: “why did you vote against SB421?” KIGGANS: “I would never vote for anything that I thought would be considered to be hurtful or harmful to veterans.” HOST: “I need you to answer why you voted, the reasons, against SB 421?” KIGGANS: “Yea, I say 1 out 6 of our enlisted sailors cannot pay their bills right now. […] I never took money for my campaign from these organizations, from those payday lenders.” HOST: “Senator, again, can you please answer that question? Why did you vote against it? Why did you vote against SB 421?” KIGGANS: “I would not do anything to harm our veteran population.” HOST: “SB 421 Senator?” KIGGANS: “Yea again insinuating that I would take any votes that are harmful to my veteran population, I will not do that.” HOST: “Senator why did you vote against it? Why did you vote against it?” KIGGANS: “I wouldn’t do anything that would harm our veteran population, thank you though.” (Kiggans walks away while the mic is still attached to her dress) [WAVY, 2:15, 10/25/22] (VIDEO)