Open-end credit plan loans; established, penalties. (SB250)
Introduced By
Sen. Roscoe Reynolds (D-Martinsville)
Progress
✓ |
Introduced |
✗ |
Passed Committee |
☐ |
Passed House |
☐ |
Passed Senate |
☐ |
Signed by Governor |
☐ |
Became Law |
Description
Open-end credit plan loans; penalties. Establishes requirements for open-end credit plan loans that track many of the provisions of the payday Loan Act. Currently, lenders and sellers making open-end loans are not required to be licensed and may charge interest at any rate agreed to by the borrower if the balance is not repaid in full within a 25-day grace period. Under this measure, the maximum amount of an open-end credit plan loan is $500. Interest may not exceed an annual rate of 36 percent, plus a loan fee of 20 percent of the initial advance and a $5 verification fee. The maximum term of a revolving loan agreement is 24 months. Open-end credit plan lenders are required to be licensed by the State Corporation Commission. A violation of the measure is a prohibited practice under the Consumer Protection Act. Violations are subject to civil and criminal penalties. Read the Bill »
Outcome
History
| Date | Action |
|---|---|
| 01/12/2010 | Prefiled and ordered printed; offered 01/13/10 10101636D |
| 01/12/2010 | Referred to Committee on Commerce and Labor |
| 01/27/2010 | Impact statement from DPB (SB250) |
| 02/15/2010 | Continued to 2011 in Commerce and Labor (15-Y 0-N) (see vote tally) |