SB588: Payday Loan Act; requires SCC to contract with one or more parties to develop, etc. database.

Chief Patron

Phil Puckett (D-38)
Served: 1998–

Progress

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

Status

03/08/2008: Passed the Senate

View Entire History

01/09/2008 Prefiled and ordered printed; offered 01/09/08 080118300
01/09/2008 Referred to Committee on Commerce and Labor
02/04/2008 Impact statement from SCC (SB588)
02/06/2008 Assigned C&L sub: Special on Payday Lending
02/12/2008 Committee substitute printed 089553300-S1
02/12/2008 Reported from Commerce and Labor with substitute (13-Y 1-N 1-A) (see vote tally)
02/12/2008 Read first time
02/12/2008 Floor substitute printed 089556328-S2 (Stolle)
02/12/2008 Floor substitute printed 089557256-S3 (Locke)
02/12/2008 Constitutional reading dispensed (38-Y 2-N) (see vote tally)
02/12/2008 Reading of substitute waived
02/12/2008 Committee substitute agreed to 089553300-S1 (23-Y 15-N 1-A) (see vote tally)
02/12/2008 Floor substitute by Senator Stolle ruled out of order 089556328-S2
02/12/2008 Floor substitute by Senator Locke ruled out of order 089557256-S3
02/12/2008 Amendment by Senator Cuccinelli rejected (15-Y 24-N 1-A) (see vote tally)
02/12/2008 Reading of amendment waived
02/12/2008 Amendment by Senator Stolle agreed to
02/12/2008 Engrossed by Senate - committee substitute with amendment SB588ES1
02/12/2008 Printed as engrossed 089553300-ES1
02/12/2008 Constitutional reading dispensed (39-Y 1-N) (see vote tally)
02/12/2008 Passed Senate (37-Y 2-N 1-A) (see vote tally)
02/12/2008 Communicated to House
02/14/2008 Placed on Calendar
02/14/2008 Read first time
02/14/2008 Referred to Committee on Commerce and Labor
02/20/2008 Impact statement from SCC (SB588ES1)
03/03/2008 Reported from Commerce and Labor with substitute (13-Y 9-N)
03/04/2008 Committee substitute printed 089631300-H1
03/04/2008 Read second time
03/05/2008 Passed by for the day
03/06/2008 Read third time
03/06/2008 Committee substitute agreed to 089631300-H1
03/06/2008 Amendments by Delegate Kilgore agreed to
03/06/2008 Engrossed by House - committee substitute with amendments SB588H1
03/06/2008 Passed House with substitute with amendments (91-Y 9-N)
03/06/2008 VOTE: --- PASSAGE (91-Y 9-N) (see vote tally)
03/06/2008 House substitute with amendments agreed to by Senate (34-Y 2-N 1-A) (see vote tally)
03/08/2008 Enrolled
03/08/2008 Bill text as passed Senate and House (SB588ER)
03/08/2008 Signed by Speaker
03/11/2008 Impact statement from SCC (SB588ER)
03/11/2008 Signed by President
03/12/2008 Signed by Speaker
03/12/2008 Signed by President
04/11/2008 Governor's recommendation received by Senate

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. Fifty cents may be charged to defray the costs of using the database. A payday lender is prohibited from making a payday loan to a person who has terminated a payday loan on the loan application date, or if the loan would cause the borrower to have more than three 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. If a borrower obtains three or more consecutive payday loans, the borrower may enter into an extended payment plan, which 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 when the check given as security for such loan is dishonored, 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; and (v) allow licensees to secure payday loans with the borrower's electronic debit authorization.

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Video

Votes were cast on this bill on the following dates for which Richmond Sunlight has video: 01/09/2008, 01/09/2008, 02/04/2008, 02/04/2008, 02/06/2008, 02/06/2008, 02/12/2008, 02/14/2008, 02/14/2008, 02/20/2008, 03/06/2008 and 03/11/2008.

Comments

Tom Elliott writes:

This proposed change appears to be of prime benefit to the payday loan industry, not the borrower. It will provide the industry a database that protects them from making loans that are at high risk of not being repaid. The cost of this should be borne by the industry not the state or the borrower. There is no reason not to have the database but to label it as payday lender reform is at best misleading.

Posted 3 months ago. #

Doug Smith writes:

Kudos to the General Assembly for lowering the fees from 391% APR to 362% APR.

Posted 2 months ago. #