SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

2015 SESSION

  • | print version

HB 1800 Open-end lending by banks, savings institutions, etc.; determining grace period.

Introduced by: Ronald A. Villanueva | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Open-end lending by banks, savings institutions, and credit unions; credit cards; grace period. Adjusts the period used in determining whether a borrower has repaid his open-end credit card balance in full and therefore is exempt from a finance charge on purchases of merchandise or services. The measure provides that a bank, savings institution, or credit union shall not impose a finance charge on purchases of merchandise or services by credit card if payment in full of the unpaid balance owing for extensions of credit is received prior to the payment due date and requires the payment due date to be at least 25 days later than the billing date. The requirement for a 25-day grace period for payments on an open-end credit plan by a credit union that does not involve a credit card is deleted. Under existing law, the next billing date, rather than the payment due date, applies. This bill is identical to SB 859.

SUMMARY AS PASSED HOUSE:

Open-end lending by banks, savings institutions, and credit unions; credit cards; grace period. Adjusts the period used in determining whether a borrower has repaid his open-end credit card balance in full and therefore is exempt from a finance charge on purchases of merchandise or services. The measure provides that a bank, savings institution, or credit union shall not impose a finance charge if payment in full of the unpaid balance owing for extensions of credit is received prior to the next payment due date and requires the next payment due date to be at least 25 days after the prior payment due date. Under existing law, the billing date, rather than the payment due date, applies.

SUMMARY AS INTRODUCED:

Open-end lending by banks and savings institutions; credit cards; grace period. Adjusts the period used in determining whether a borrower has repaid his open-end credit card balance in full and therefore is exempt from a finance charge on purchases of merchandise or services. The measure provides that the lender shall not impose a finance charge if payment in full of the unpaid balance owing for extensions of credit is received prior to the next payment due date and requires the next payment due date to be at least 25 days after the prior payment due date. Under existing law the billing date, rather than the payment due date, applies.