Virginia House Bill 1296 (Prior Session Legislation)

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

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.

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

Del. Dan Helmer [D]

Date	Chamber	Action
2020-01-21	House	Incorporated by Labor and Commerce
2020-01-08	House	Referred to Committee on Labor and Commerce
2020-01-08	House	Prefiled and ordered printed; offered 01/08/20 20104998D

Chapter	Article	Section	Citation Type	Statute Text
59	1	200	(n/a)	See Bill Text
59	1	335.5	(n/a)	See Bill Text
6	2	100	(n/a)	See Bill Text
6	2	1520	(n/a)	See Bill Text
6	2	1816	(n/a)	See Bill Text
6	2	1817	(n/a)	See Bill Text
6	2	1818	(n/a)	See Bill Text
6	2	2216	(n/a)	See Bill Text
6	2	312	(n/a)	See Bill Text

Type	Source
Summary	https://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+HB1296
Text	https://lis.virginia.gov/cgi-bin/legp604.exe?201+ful+HB1296+hil