Motor vehicle equity loans; penalties. (SB598)

Introduced By

Sen. Brandon Bell (R-Roanoke) with support from co-patron Sen. Mark Obenshain (R-Harrisonburg)

Progress

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

Description

Motor vehicle equity loans; penalties. Regulates motor vehicle equity loans, which are closed-end loans secured by an interest in a motor vehicle. The measure caps the interest on such loans at 20% per month for the first two months and 3% for the balance of the term. If such a loan is repaid in full within 48 hours, the loan shall not bear interest. The maximum term of such a loan is 12 months. The maximum amount of a motor vehicle equity loan is 50% of the value of the motor vehicle. 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. Read the Bill »

Status

02/13/2006: Failed to Pass in Committee

History

DateAction
01/11/2006Presented and ordered printed 062681700
01/11/2006Referred to Committee on Commerce and Labor
01/22/2006Fiscal impact statement from SCC (SB598)
02/13/2006Continued to 2007 in Commerce and Labor (14-Y 1-N)