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 »
Outcome
History
Date | Action |
---|---|
01/11/2006 | Presented and ordered printed 062681700 |
01/11/2006 | Referred to Committee on Commerce and Labor |
01/22/2006 | Fiscal impact statement from SCC (SB598) |
02/13/2006 | Continued to 2007 in Commerce and Labor (14-Y 1-N) (see vote tally) |