Title loans; establishes a system for regulating. (HB1363)

Introduced By

Del. Jackson Miller (R-Manassas)

Progress

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

Description

Title loans.  Establishes a system for regulating title loans, which are non-purchase money loans secured by a lien on a motor vehicle's title. The interest rate that currently may be charged on such loans is uncapped if the loan is structured as an open-end loan and the borrower does not pay the balance in full within a 25-day grace period. Under this measure, interest may not exceed rate of 22% per month on the portion of the principal that does not exceed $1,000, 20% per month on the portion of the principal exceeding $1,000 but not exceeding $2,000, and 18% per month on the portion of the principal in excess of $2,000.  The original term of a title loan agreement shall be one month. Loans may be renewed and on or before the maturity date of each loan or renewal period, the borrower must pay an amount sufficient to both satisfy any interest due and to reduce the outstanding principal balance by at least 7% of the original loan amount.  If the borrower fails to make a required principal payment, interest will stop accruing on the unpaid amount so that the amount of principal accruing interest during any renewal period is less, by at least 7% of the original loan amount, than the amount of principal accruing interest in the previous period.  The lender may allow the borrower to defer repayment of any non-interest bearing principal to a later date.  Title lenders are required to be licensed by the State Corporation Commission. If a borrower defaults under a title loan agreement, the lender may repossess the motor vehicle and dispose of it in accordance with the Uniform Commercial Code.  Violations are subject to civil and criminal penalties. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/22/2010Committee
01/22/2010Presented and ordered printed 10104155D
01/22/2010Impact statement from VCSC (HB1363)
01/22/2010Referred to Committee on Commerce and Labor
01/27/2010Impact statement from SCC (HB1363)
02/16/2010Left in Commerce and Labor

Duplicate Bills

The following bills are identical to this one: SB375.