Open-end credit; allows only a seller of goods to extend credit under agreement. (HB974)

Introduced By

Del. David Yancey (R-Newport News) with support from co-patron Del. Paul Krizek (D-Alexandria)

Description

Open-end credit agreements. Allows only a seller of goods to extend credit under an open-end credit agreement at such interest rates as the seller and borrower agree, provided that a finance charge is not imposed if payment in full of the unpaid balance is received prior to the next billing date that follows a 25-day grace period. To extend credit under such an agreement, the loan must be for the sole purpose of financing the bona fide purchase price of goods used for personal, family, or household purposes. Currently, any lender may make such loans under an open-end credit plan. The measure prohibits sellers of such goods under an open-end credit agreement from engaging in the extension of credit under any other chapter of Title 6.2. The measure provides that licensed consumer finance companies may not make loans under such open-end credit agreements. The measure does not prohibit the collection of an outstanding loan made prior to the measure's effective date. Read the Bill »

Outcome

History