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2009 SESSION

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SB 1490 Consumer Finance Act; open-end loan plans secured by motor vehicle titles.

Introduced by: Mark R. Herring | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Open-end credit plans; loans secured by motor vehicle title.  Limits the existing provision that currently allows any seller or lender to extend credit under an open-end or similar plan.  The measure allows only sellers of personal, family, or household goods making open-end extensions of credit to purchasers when financing the price of such goods to charge interest and fees at any rate to which the seller and borrower agree, provided they give a 25-day interest-free grace period.  The measure also provides that any loan to an individual for personal, family, or household purposes that is secured by a nonpurchase-money security interest in a motor vehicle shall be subject to the provisions of the Consumer Finance Act.  Licensees under the Consumer Finance Act are prohibited from charging interest of more than 36 percent annually on such loan balances and are required to provide a 25-day interest-free grace period.


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