The Virginia Senate sent a message to payday lenders on Friday: Don’t think you can get over on us.

Annoyed by what they perceive as the lenders’ end run around tough new restrictions passed last year, senators unanimously passed a bill to prevent them from offering other types of loans.

The majority of the state’s nearly 800 payday lenders received regulatory approval to offer open-end loans that can carry unlimited interest rates after the General Assembly last year passed strict regulations, which included limiting the number of loans borrowers could get annually. The restrictions took effect this month.

They were the result of three years of bickering among legislators, some who felt the lenders preyed on the vulnerable by trapping them in a cycle of debt and those who believed they offered a valuable service to those who can’t get traditional credit. (Source: The Associated Press)

This kind of thing does make me wonder. I understand why lawmakers would be concerned about payday lending. Many low income consumers find themselves caught in a never-ending cycle paying a ton of money in interest without being able to touch the principal owed. This is a difficult reality for many Americans, some of whom have lost bank accounts as a result.

So yes, regulation of the payday industry is definitely a good thing if it means protecting the best interest of the consumer when dealing with payday loans.

But here is what i don’t understand. The state of Georgia outlawed payday lending all-together. You can argue this was a great move if you believe that the working poor should be protected from these high interest loans… but what about title lenders? How are these lenders allowed to operate?? Aren’t these even more harmful?? Not only do people risk paying a ton in interest for a small loan, but many actually lose their cars!!

I wonder what Virginia lawmakers make of title loans..