On March 25, Virginia Governor Glenn Youngkin vetoed a bill, SB 1252, which would have subjected persons “[m]aking, offering, assisting, or arranging a debtor to obtain a loan” to the state’s 12 percent usury limit. The bill potentially could have restricted fintech companies from offering or arranging loans to Virginia borrowers originated by an out-of-state bank exporting interest rates lawful in its location pursuant to federal law. SB 1252 also defined “make” or “making” in reference to a loan as advancing, offering to advance, or committing to advance funds to a borrower.

The veto statement highlighted concerns that while SB 1252 aimed to curb predatory lending, its vague and expansive language might unintentionally capture legitimate financial activities and hinder credit access. Governor Youngkin stated that a more effective solution would involve clear and narrowly-tailored protections to address genuine predatory practices while preserving access to fair and lawful credit options for Virginia borrowers.