Bill Text: VA HB872 | 2010 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Credit Services Businesses Act; prohibited practices.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2010-04-11 - Governor: Acts of Assembly Chapter text (CHAP0421) [HB872 Detail]

Download: Virginia-2010-HB872-Comm_Sub.html

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10104934D
HOUSE BILL NO. 872 AMENDMENT IN THE NATURE OF A SUBSTITUTE (Proposed by the House Committee on Commerce and Labor on February 9, 2010) (Patron Prior to Substitute--Delegate Cline) A BILL to amend and reenact §59.1-335.5 of the Code of Virginia, relating to practices prohibited under the Virginia Credit Services Businesses Act.

Be it enacted by the General Assembly of Virginia:

1. That §59.1-335.5 of the Code of Virginia is amended and reenacted as follows:

§59.1-335.5. Prohibited practices.

A credit services business, and its salespersons, agents and representatives, and independent contractors who sell or attempt to sell the services of a credit services business, shall not do any of the following:

1. Charge or receive any money or other valuable consideration prior to full and complete performance of the services that the credit services business has agreed to perform for or on behalf of the consumer, unless the consumer has agreed to pay for such services during the term of a subscription agreement that provides for the consumer to make periodic payments during the agreement's term in consideration for the credit services business's ongoing performance of services for or on behalf of the consumer;

2. Charge or receive any money or other valuable consideration solely for referral of the consumer to a retail seller or to any other credit grantor who will or may extend to the consumer, if the credit that is or will be extended to the consumer is upon substantially the same terms as those available to the general public;

3. Make, or counsel or advise any consumer to make, any statement that is untrue or misleading and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading, to a consumer reporting agency or to any person who has extended credit to a consumer or to whom a consumer is applying for an extension of credit, with respect to a consumer's creditworthiness, credit standing, or credit capacity; or

4. Make or use any untrue or misleading representations in the offer or sale of the services of a credit services business or engage, directly or indirectly, in any act, practice, or course of business which operates or would operate as a fraud or deception upon any person in connection with the offer or sale of the services of a credit services business.