HB2000: Motor vehicle equity loans; establish system for licensing & regulating revolving lines of credit.

Chief Patron

Del. Terry Kilgore (R-1)

Status

Bill is Dead

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Summary

Motor vehicle equity loans; penalties.  Establishes a system for licensing and regulating revolving lines of credit secured by equity in a motor vehicle. The maximum amount of a motor vehicle line of credit is $10,000. Interest and fees may be imposed at such rates as may be agreed upon by the lender and borrower. Lenders are required to be licensed with the State Corporation Commission. A violation of the measure is a prohibited practice under the Consumer Protection Act. Violators are subject to civil and criminal penalties. Making unlicensed motor vehicle equity loans, or arranging or brokering motor vehicle equity loans, is punishable as a Class 1 misdemeanor. The measure will become effective October 1, 2007.

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