Payday Loan Act; requires SCC to contract with one or more parties to develop, etc. database. (SB588)
Introduced By
Sen. Phil Puckett (D-Tazewell)
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, 2009, 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 or dependent 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. A payday loan may not be made to a borrower in an extended payment plan. 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 (v) allow licensees to secure payday loans with the borrower's electronic debit authorization. Read the Bill »
Status
03/12/2008: Passed the General Assembly
History
| Date | Action |
|---|---|
| 01/09/2008 | Prefiled and ordered printed; offered 01/09/08 080118300 |
| 01/09/2008 | Referred to Committee on Commerce and Labor |
| 02/04/2008 | Impact statement from SCC (SB588) |
| 02/06/2008 | Assigned C&L sub: Special on Payday Lending |
| 02/12/2008 | Committee substitute printed 089553300-S1 |
| 02/12/2008 | Reported from Commerce and Labor with substitute (13-Y 1-N 1-A) (see vote tally) |
| 02/12/2008 | Read first time |
| 02/12/2008 | Floor substitute printed 089556328-S2 (Stolle) |
| 02/12/2008 | Floor substitute printed 089557256-S3 (Locke) |
| 02/12/2008 | Constitutional reading dispensed (38-Y 2-N) (see vote tally) |
| 02/12/2008 | Reading of substitute waived |
| 02/12/2008 | Committee substitute agreed to 089553300-S1 (23-Y 15-N 1-A) (see vote tally) |
| 02/12/2008 | Floor substitute by Senator Stolle ruled out of order 089556328-S2 |
| 02/12/2008 | Floor substitute by Senator Locke ruled out of order 089557256-S3 |
| 02/12/2008 | Amendment by Senator Cuccinelli rejected (15-Y 24-N 1-A) (see vote tally) |
| 02/12/2008 | Reading of amendment waived |
| 02/12/2008 | Amendment by Senator Stolle agreed to |
| 02/12/2008 | Engrossed by Senate - committee substitute with amendment SB588ES1 |
| 02/12/2008 | Printed as engrossed 089553300-ES1 |
| 02/12/2008 | Constitutional reading dispensed (39-Y 1-N) (see vote tally) |
| 02/12/2008 | Passed Senate (37-Y 2-N 1-A) (see vote tally) |
| 02/12/2008 | Communicated to House |
| 02/14/2008 | Placed on Calendar |
| 02/14/2008 | Read first time |
| 02/14/2008 | Referred to Committee on Commerce and Labor |
| 02/20/2008 | Impact statement from SCC (SB588ES1) |
| 03/03/2008 | Reported from Commerce and Labor with substitute (13-Y 9-N) |
| 03/04/2008 | Committee substitute printed 089631300-H1 |
| 03/04/2008 | Read second time |
| 03/05/2008 | Passed by for the day |
| 03/06/2008 | Read third time |
| 03/06/2008 | Committee substitute agreed to 089631300-H1 |
| 03/06/2008 | Amendments by Delegate Kilgore agreed to |
| 03/06/2008 | Engrossed by House - committee substitute with amendments SB588H1 |
| 03/06/2008 | Passed House with substitute with amendments (91-Y 9-N) |
| 03/06/2008 | VOTE: --- PASSAGE (91-Y 9-N) |
| 03/06/2008 | House substitute with amendments agreed to by Senate (34-Y 2-N 1-A) |
| 03/08/2008 | Enrolled |
| 03/08/2008 | Bill text as passed Senate and House (SB588ER) |
| 03/08/2008 | Signed by Speaker |
| 03/11/2008 | Impact statement from SCC (SB588ER) |
| 03/11/2008 | Signed by President |
| 03/12/2008 | Signed by Speaker |
| 03/12/2008 | Signed by President |
| 04/11/2008 | Governor's recommendation received by Senate |
Comments
This proposed change appears to be of prime benefit to the payday loan industry, not the borrower. It will provide the industry a database that protects them from making loans that are at high risk of not being repaid. The cost of this should be borne by the industry not the state or the borrower. There is no reason not to have the database but to label it as payday lender reform is at best misleading.
Kudos to the General Assembly for lowering the fees from 391% APR to 362% APR.