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)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


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 »


Bill Has Failed


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)