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Virginia · checked October 24, 2026

Payday loans in Virginia: the rules and your way out

Only longer installment-style loans allowed

Since January 1, 2021 (the 2020 Fairness in Lending Act), Virginia's short-term lenders may make only installment loans of up to $2,500 over 4 to 24 months at up to 36% interest plus a capped monthly fee.

Law: Va. Code §§ 6.2-1800 to 6.2-1829 (Chapter 18, Short-Term Loans), as amended by 2020 Acts chs. 1215 and 1258. Code of Virginia on LIS as of 2026-10-24 (includes 2026 updates); § 6.2-1816 last amended 2023, c. 287.

Virginia's rules, line by line

Largest loan
$2,500 (Va. Code § 6.2-1816.1(1); § 6.2-1816(5)).
Shortest term
4 months, unless the monthly payment does not exceed the greater of 5% of verified gross monthly income or 6% of verified net monthly income (§ 6.2-1816.1(2)).
Longest term
24 months (§ 6.2-1816.1(2)).
Fee or rate cap
Interest at a simple annual rate not to exceed 36%, plus a monthly maintenance fee not exceeding the lesser of 8% of the original loan amount or $25 (subject to inflation adjustment by regulation, § 6.2-1817.1); returned-payment fee up to $25; late charge up to $20 (§ 6.2-1817). Total fees and charges may not exceed 50% of the loan amount for loans of $1,500 or less, or 60% for larger loans, excluding return and late fees (§ 6.2-1818.3).
Renewals and rollovers
Refinancing is allowed only into another short-term loan, with a prorated refund of fees (§§ 6.2-1818.1, 6.2-1818.2(F)); no other renewal or extension (§ 6.2-1816(6)).
Loans at once
One short-term loan from any licensee at a time (§ 6.2-1816(6)-(7)); no loan to someone who owes a motor vehicle title lender (§ 6.2-1816(4)).
Payment plan if you cannot pay
No separate extended payment plan; every loan must already be a precomputed installment loan (§ 6.2-1816.1(4)). Lender may not sue until 60 days after default, during which the parties may voluntarily agree to a repayment arrangement (§ 6.2-1816(24)).
State loan database
Yes. A real-time loan database run by SCC-certified provider(s); the lender must check it before each loan (§ 6.2-1810).
Limits on collection
No threatening or starting criminal proceedings over a bounced check or nonpayment (§ 6.2-1816(9)). No re-presenting a dishonored check, and no more than two consecutive failed electronic debits, without new written authorization; must stop electronic debits on request (§ 6.2-1816(10)-(12)). Must follow FDCPA harassment and unfair-practice rules (§ 6.2-1816(20)). Court damages and costs capped at the original loan amount (§ 6.2-1817(A)(4)). Acceleration only after 10 days' written notice and with prorated interest and fees (§ 6.2-1816(23)).
Other rights
Right to cancel by returning the loan proceeds by 5 p.m. on the third business day after the loan (§ 6.2-1816.1(3)(g), (5)). Partial payments of $5 or more at any time without charge; free balance statements; prorated refund on early payoff (§ 6.2-1818.2). Electronic payment is optional and can be revoked (§ 6.2-1816.1(3)(h)). Noncompliant terms are unenforceable and borrowers may sue for losses plus attorney fees (§ 6.2-1826).

If you are behind on a payday loan in Virginia

  1. Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
  2. Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
  3. Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

Sources

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.

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