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SB 478

Financial institutions; loans and legal rate of interest.

2026 Regular Session Introduced by Dave Marsden

SB 478 proposed modifications to Virginia's legal interest rate limits on loans from financial institutions but was withdrawn before committee consideration.

Stricken at request of Patron in Commerce and Labor (13-Y 0-N)
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Bill Summary · SB 478

Legislative bill overview

SB 478 addresses the legal interest rates that financial institutions in Virginia can charge on loans. The bill was prefiled in January 2026 but was stricken (withdrawn) from consideration in late January at the request of its patron, Senator Dave Marsden, after receiving a fiscal impact analysis from the State Corporation Commission.

Why is this important

Interest rate caps and regulations directly affect borrowing costs for consumers and the availability of credit in Virginia. Changes to usury laws (legal interest rate limits) can influence lending practices, affect vulnerable borrowers, and shape the competitive landscape for financial services in the state.

Potential points of contention

  • Consumer protection vs. lending access: Stricter rate caps may protect borrowers from predatory lending but could reduce credit availability for higher-risk applicants or force lenders to exit the market
  • Economic impact uncertainty: The fiscal impact statement likely revealed concerns about effects on state-chartered institutions, consumer credit markets, or tax revenue that prompted the bill's withdrawal
  • Scope of coverage: Determining which types of loans and lenders fall under rate restrictions (payday lenders, credit unions, banks, online lenders) creates definitional and enforcement challenges

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

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