Payday loans; requires SCC to contract w/third party to establish database through Internet. (HB912)

Introduced By

Del. Glenn Oder (R-Newport News) with support from co-patron Del. Kirk Cox (R-Colonial Heights)

Progress

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

Description

Payday loan act. Requires the State Corporation Commission on or before July 1, 2007, to contract with a third party to establish and administer a database with real-time access through an Internet connection to ensure compliance with the Payday Loan Act. The measure also (i) increases the minimum length of a payday loan from seven to 15 days; (ii) prohibits a payday lender from making a payday loan to a borrower if the borrower has another payday loan outstanding or within 48 hours following the borrower's payment of another payday loan; (iii) making a payday loan to a borrower if the proceeds of the payday loan will be used in whole or in part to repay an outstanding payday loan; (iv) prohibits a lender from instituting collection proceedings against a borrower until 60 days after the date of default; (v) prohibits a lender from engaging in any unfair, misleading, deceptive, or fraudulent acts or practices in the making or collecting of a payday loan; (vi) requires 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 the provisions of the Fair Debt Collection Practices Act that apply to debt collectors; (vii) increases the maximum fine or penalty for a violation from $1,000 to $2,500; and (viii) provides that any provision of a written loan agreement that violates the Payday Loan Act is unenforceable against the borrower. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/10/2006Prefiled and ordered printed; offered 01/11/06 062629428
01/10/2006Referred to Committee on Commerce and Labor
01/17/2006Fiscal impact statement from SCC (HB912)
01/18/2006Assigned to Commerce and Labor sub-committee: Financial Institutions (Dudley)
02/10/2006Reported from Commerce and Labor with substitute (21-Y 1-N)
02/11/2006Committee substitute printed 062764444-H1
02/11/2006Read first time
02/13/2006Read second time
02/13/2006Committee substitute agreed to 062764444-H1
02/13/2006Stricken from House calendar
02/17/2006Fiscal impact statement from SCC (HB912H1)