On August 24, 2021, the Virginia Attorney General (“Virginia AG”) announced that it entered into settlement ?with a Virginia-based lender and its managing member over allegations that the lender violated §§ 6.2-303 and 6.2-1501(A) of Virginia’s consumer finance statute.???  The settlement was filed as a consent judgment in the Circuit Court for? the City of Richmond and was approved by the Court on August 16.

The Virginia AG initially sued the lender in Richmond City Circuit Court on December 2020 for alleged violations of Commonwealth usury laws. The Commonwealth’s complaint alleged that the lender (and its managing member) charged interest or other compensation on loans that exceeded a 12% effective annual interest, without being licensed as a consumer finance company.  According to the Virginia AG, the company sought compensation for some loans through above-market real estate listings and sales commissions or through below-market option sales and purchase prices, instead of seeking compensation by charging traditional interest.

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