SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

2010 SESSION

  • | print version

HB 414 Motor vehicle equity loans; establishes requirements, penalties.

Introduced by: G. Glenn Oder | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

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.


FULL TEXT

HISTORY