VA HB1296 | 2020 | Regular Session

Status

Spectrum: Partisan Bill (Democrat 1-0)
Status: Introduced on January 8 2020 - 25% progression
Action: 2020-01-21 - Incorporated by Labor and Commerce
Text: Latest bill text (Prefiled) [HTML]

Summary

Motor vehicle title loans, payday loans, consumer finance loans, and open-end credit plans; interest rate. Caps the rate of interest that may be charged on motor vehicle title loans, payday loans, and open-end credit plans at an annual rate that is 25 percent higher than the federal funds rate in effect on the date the loan was made. The bill prohibits a lender from charging a membership fee, participation fee, or transaction fee in connection with any such extension of credit. The bill also imposes the same maximum interest rate on loans made by a licensed consumer finance company and eliminates the existing provision that permits such licensed companies to charge any agreed-upon amount of interest on consumer finance loans over $2,500. The measure caps the allowable amount of repossession and sales fees in connection with a motor vehicle title loan; imposes restrictions on open-end lending; and prevents payday lenders and other lenders from using a credit services business license to extend credit that is for less than $5,000, has a term of less than one year, is provided under an open-end credit plan, or has an interest rate that exceeds 36 percent per year. A violation of the open-end lending provisions is made a prohibited practice under the Virginia Consumer Protection Act.

Tracking Information

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Title

Motor vehicle title loans, payday loans, consumer finance loans, etc.; interest rate.

Sponsors


History

DateChamberAction
2020-01-21HouseIncorporated by Labor and Commerce
2020-01-08HouseReferred to Committee on Labor and Commerce
2020-01-08HousePrefiled and ordered printed; offered 01/08/20 20104998D

Code Citations

ChapterArticleSectionCitation TypeStatute Text
591200(n/a)See Bill Text
591335.5(n/a)See Bill Text
62100(n/a)See Bill Text
621520(n/a)See Bill Text
621816(n/a)See Bill Text
621817(n/a)See Bill Text
621818(n/a)See Bill Text
622216(n/a)See Bill Text
62312(n/a)See Bill Text

Virginia State Sources


Bill Comments

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