Motor vehicle equity loans; establishes requirements, penalties. (HB414)

Introduced By

Del. Glenn Oder (R-Newport News)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Motor vehicle equity loans; penalties.  Establishes requirements for motor vehicle equity loans, which are non-purchase money closed-end loans secured by an interest in a motor vehicle. The interest rate that currently may be charged on such loans is unlimited 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, the maximum amount of a motor vehicle equity loan is 50 percent of the vehicle's value, not to exceed $2,500. Interest may not exceed a monthly rate of 10 percent for the first two months and three percent per month thereafter. The maximum term of a loan is one year. Motor vehicle equity 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 »


Bill Has Failed


01/12/2010Prefiled and ordered printed; offered 01/13/10 10101461D
01/12/2010Referred to Committee on Commerce and Labor
02/16/2010Left in Commerce and Labor