Payday Loan Act; SCC to contract with third party to develop Internet accessible database. (HB2563)

Introduced By

Del. Lee Ware (R-Powhatan) with support from co-patrons Del. Algie Howell (D-Norfolk), and Del. Terrie Suit (R-Virginia Beach)

Progress

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

Description

Payday Loan Act. Requires the State Corporation Commission, by July 1, 2008, 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 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. The installments may be secured by three checks written by the borrower. 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 (vi) allow licensees to secure payday loans with the borrower's electronic debit authorization. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/10/2007Committee
01/10/2007Prefiled and ordered printed; offered 01/10/07 070211540
01/10/2007Referred to Committee on Commerce and Labor
01/16/2007Impact statement from SCC (HB2563)
01/23/2007Assigned C & L sub: Financial Institutions (Dudley)
01/31/2007Committee substitute printed 070272540-H1
02/01/2007Read first time
02/02/2007Passed by for the day
02/03/2007Read second time
02/03/2007Committee substitute agreed to 070272540-H1
02/03/2007Amendments by Delegate McClellan agreed to (55-Y 39-N)
02/03/2007Pending question ordered
02/03/2007Amendments by Delegate Oder rejected
02/03/2007Engrossed by House - committee substitute with amendments HB2563EH1
02/03/2007Printed as engrossed 070272540-EH1
02/05/2007Engrossed bill reprinted 070272540-EH1
02/05/2007Passed by for the day
02/06/2007Stricken from House calendar
02/08/2007Impact statement from SCC (HB2563EH1)

Duplicate Bills

The following bills are identical to this one: SB1014.