HB1351: Payday Loan Act; requires SCC to contract with one or more parties to develop, etc. database.

Chief Patron

Del. Lee Ware (R-65)

Lee Ware (R-65)
Powhatan, VA
Served: 1998–

Progress

	Introduced
	Passed Committee
	Passed House
	Passed Senate
	Signed by Governor
	Became Law

Status

02/12/2008: Failed to Pass in Committee

View Entire History

Summary

Payday Loan Act.  Requires the State Corporation Commission, by July 1, 2009, to certify and contract with one or more third parties to develop, implement, and maintain an Internet-accessible database, and requires payday lenders to query the database prior to making any loan to determine whether an applicant is eligible for the loan. A payday lender is prohibited from making a payday loan if the loan would cause the borrower to have more than two payday loans outstanding at the same time. Payday lenders are prohibited from knowingly making loans to a member of the military service or to the spouse or dependent of such person. A borrower may enter into an extended payment plan to repay any payday loan, provided that it may do so with any lender not more frequently than once every 12 months. An extended payment plan allows the borrower to repay the loan in at least two equal installments over 60 days. A payday loan may not be made to a borrower in an extended payment plan. Other provisions (i) prohibit a lender from engaging in any unfair, misleading, deceptive, or fraudulent acts or practices in the making or collecting of a payday loan; (ii) require a lender, when collecting or attempting to collect a payday loan, to comply with certain restrictions and prohibitions contained in the Fair Debt Collection Practices Act; (iii) provide that any provision of a written loan agreement that violates the Payday Loan Act is unenforceable against the borrower; (iv) state that the provisions of the Payday Loan Act apply to Internet lenders; (v) allow licensees to secure payday loans with the borrower's electronic debit authorization; (vi) prohibit a lender from filing or initiating a legal proceeding against a borrower until 60 days after the date of default on a payday loan; and (vii) prohibit a lender from making a payday loan to a borrower on the same day that the borrower pays or otherwise satisfies a previous payday loan.