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SB 432

Financial institutions; loans and legal rate of interest.

2026 Regular Session Introduced by Lamont Bagby

SB 432 would have adjusted Virginia's legal interest rate limits on loans, but was withdrawn before passage.

Stricken at request of Patron in Commerce and Labor (14-Y 0-N)
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Bill Summary · SB 432

Legislative bill overview

SB 432 would modify Virginia's usury laws by adjusting the legal rate of interest that financial institutions can charge on loans. The bill was introduced by Delegate Lamont Bagby and referred to the Committee on Commerce and Labor, but was ultimately stricken (withdrawn) at the patron's request on January 26, 2026.

Why is this important

Usury laws directly affect borrowing costs for consumers and the availability of credit in a state. Changes to legal interest rate caps can influence who qualifies for loans, how much consumers pay, and the competitiveness of Virginia's financial services sector. Since the bill was stricken before substantive debate, its specific provisions were not enacted into law.

Potential points of contention

  • Consumer protection vs. market access: Lowering rate caps protects borrowers from predatory lending but may reduce credit availability for high-risk borrowers; raising caps does the opposite
  • Impact on underserved populations: Changes to interest rate limits disproportionately affect low-income and credit-challenged Virginians who rely on alternative lending
  • Competitive effects: Adjusting rates affects whether Virginia banks remain competitive with out-of-state lenders and online financial services

Compiled from official sources — confirm details with the bill’s official record.

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