SEARCH SITE
VIRGINIA LAW PORTAL
- Code of Virginia
- Virginia Administrative Code
- Constitution of Virginia
- Charters
- Authorities
- Compacts
- Uncodified Acts
- RIS Users (account required)
SEARCHABLE DATABASES
- Bills & Resolutions
session legislation - Bill Summaries
session summaries - Reports to the General Assembly
House and Senate documents - Legislative Liaisons
State agency contacts
ACROSS SESSIONS
- Subject Index: Since 1995
- Bills & Resolutions: Since 1994
- Summaries: Since 1994
Developed and maintained by the Division of Legislative Automated Systems.
1997 SESSION
Be it enacted by the General Assembly of Virginia:
1. That §§ 6.1-330.63 and 6.1-330.78 of the Code of Virginia are amended and reenacted as follows:
§ 6.1-330.63. Charges by banks or savings institutions; revolving credit.
A. 1. Notwithstanding any other provision of this chapter, any bank
or savings institution may impose finance charges and other charges and fees at
such rates and in such amounts and manner as may be agreed by the
borrower under a contract for revolving credit or any plan which permits an
obligor to avail himself of the credit so established. Any finance charges
computed by application of a rate to outstanding balances shall be computed at
the option of the bank or savings institution on:
a. The average daily balance for the period ending on the billing
date;
b. The balance existing on the billing date of the month; or
c. Any other balance which does not result in the lender charging or
receiving any sum in excess of what would be charged or received under
subdivision 1 a or 1 b of this subsection.
2. No finance charge shall be imposed unless the bill is mailed not later
than eight days (excluding Saturdays, Sundays and holidays) after the billing
date, except that such time limitation shall not apply in any case where the
lender has been prevented, delayed, or hindered in mailing or delivering the
bill within such time period because of an act of God, war, civil disorder,
natural disaster, strike, or other excusable or justifiable cause.
3. In the event of the extension of credit by a bank or
savings institution hereunder to be effected by the use of a credit card for
the purchase of merchandise or services, no finance charge shall be imposed
upon the cardholder or borrower on such extension of credit if payment in full
of the unpaid balance owing for all extensions of credit under the revolving
credit contract or plan is received at the place designated by the creditor
prior to the next billing date (which shall be at least twenty-five days later
than the prior billing date). In the event of the extension of credit by
a bank or savings institution hereunder to be effected by the use of a credit
card for the purchase of merchandise or services, no finance charge shall be
imposed upon the cardholder or borrower on such extension of credit if payment
in full of the unpaid balance owing for all extensions of credit under the
revolving credit contract or plan is received at the place designated by the
creditor prior to the next billing date (which shall be at least twenty-five
days later than the prior billing date).
4. Any payment, in full or in part, received by the bank or savings
institution shall be credited in the manner specified in the contract within
two banking days of its receipt.
5. As used in this section "average daily balance" means, for any billing
period, that amount which is the sum of the actual amounts outstanding each day
during the billing period divided by the number of days in the billing
period.
B. The higher rate in excess of that permitted prior to July 1, 1982,
shall not take effect as to balances existing on or before April 1, 1983,
unless:
1. Such creditor shall notify the borrower in writing of the proposed
change, that the higher charge on existing balances and balances incurred prior
to the effective date of the change is accepted by use of the revolving credit
after giving of the notice, and such borrower is given at least nine months
prior to the effective date of such change to pay off balances existing on the
date of such notice;
2. Such borrower accepts the proposed change and modification of rate by
using the revolving credit at any time thirty days or more after the giving by
the creditor of the notice.
C. Beginning after January 1, 1988, in the case of any plan in which the
charge authorized by this section is imposed on the average daily balance and
such balance is calculated under the plan without excluding purchases incurred
during the billing period, the issuer shall disclose to all new cardholders and
thereafter on the upper one-half of the periodic statement, the following in
letters at least equal in size to the letters used in the wording of the
minimum payment terms:
To avoid additional finance charges being applied to your current
purchases on next month's statement, pay the new balance on this statement in
full by the due date.
D. B. Any application form or preapproved written
solicitation for an open-end credit card account to be used for personal,
family, or household purposes which is mailed on or after January 1, 1988, to a
consumer residing in this Commonwealth by or on behalf of a creditor, whether
or not the creditor is located in this Commonwealth, other than an application
form or solicitation included in a magazine, newspaper, or other publication
distributed by someone other than the creditor, shall contain or be accompanied
by any of the following disclosures:
1. A disclosure of each of the following if applicable:
a. Any periodic rate or rates that may be applied to the account, expressed as an annual percentage rate or rates. If the account is subject to a variable rate, the creditor may instead disclose the rate as of a specific date and indicate that the rate may vary, or identify the index and any amount or percentage added to, or subtracted from, that index and used to determine the rate.
b. Any membership or participation fee that may be imposed for availability of a credit card account.
c. Any transaction fee that may be imposed on purchases, or any other charge or fee that may be imposed, expressed as an amount or as a percentage of the transaction, as applicable.
d. Any grace period or free period during which the consumer may repay the full balance reflected on a billing statement which is attributable to purchases of goods or services from the creditor or from merchants participating in the credit card plan, without the imposition of additional finance charges. The creditor shall either disclose the number of days of that period, calculated from the closing date of the prior billing cycle to the date designated in the billing statement sent to the consumer as the date by which that payment must be received to avoid additional finance charges, or describe the manner in which the period is calculated. If the creditor does not provide such a period for purchases, the disclosure shall so indicate;
2. A disclosure that satisfies the initial disclosure requirements of Regulation Z; or
3. If a creditor is now or hereafter required under federal law to make disclosures of the terms applicable to a credit card account in connection with application forms or solicitations, the creditor shall be deemed to have complied with the requirements of this subsection if the creditor complies with the federal disclosure requirements. The disclosure of any transaction fee that may be imposed on purchases, or any other charge or fee, shall be written on any such application form or preapproved written solicitation.
C. A contract for revolving credit between a bank or savings institution and an obligor, or any plan which permits an obligor to avail himself of the credit so established, shall be governed solely by federal law, and by the laws of the Commonwealth of Virginia unless otherwise expressly agreed in writing by the parties.
§ 6.1-330.78. Open-end sales and loan plans.
A. 1. Notwithstanding any provision of this chapter other than
§ 6.1-330.71, any seller or lender engaged in the extension of credit
under an open-end credit or similar plan under which a finance charge is
imposed upon the cardholder or consumer, if payment in full of the unpaid
balance is not received at the place designated by the creditor prior to the
next billing date (which shall be at least twenty-five days later than the
prior billing date), under which a finance charge is imposed upon the
cardholder or consumer obligor, if payment in full of
the unpaid balance is not received at the place designated by the creditor
prior to the next billing date (which shall be at least twenty-five days later
than the prior billing date), may impose finance charges and other charges and
fees at such rate rates and in such amounts and
manner as may be agreed upon by the seller or lender and the
cardholder or consumer obligor. Such rate may be applied
at the option of the seller or lender, to:
a. The average daily balance for the period ending on the billing
date;
b. The balance existing on the billing date of the month; or
c. Any other balance which does not result in the seller or lender
charging or receiving finance charges in excess of those which would be charged
or received under subdivision a or b of this subsection.
2. No finance charge shall be imposed unless the bill is mailed not later
than eight days (excluding Saturdays, Sundays and holidays) after the billing
date, except that such time limitation shall not apply in any case where the
seller or lender has been prevented, delayed, or hindered in mailing or
delivering the bill within such time period because of an act of God, war,
civil disorder, natural disaster, strike, or other excusable or justifiable
cause.
3. Notwithstanding the provisions of this section, a seller or lender may
charge and collect a minimum finance charge of one-half dollar per month;
however, no finance charge shall be charged against a zero balance.
4. For the purposes of this section the average daily balance for any
billing period shall be that amount which is the sum of the actual amounts
outstanding each day during the period, divided by the number of days in the
period.
B. Notwithstanding the provisions of § 6.1-330.71 and subject to the provisions of § 8.9-204.1, any loan made under this section may be secured in whole or in part by a subordinate mortgage or deed of trust on residential real estate improved by the construction thereon of housing consisting of one to four family dwelling units.
C. Unless the contract of indebtedness provides that the rate of finance
charge shall vary in accordance with an exterior standard, no increase in
finance charge rate shall take effect unless at least thirty days prior to the
effective date of such increase a written notice of the increase has been
mailed or otherwise delivered to the cardholder or consumer explaining that the
making of additional charges under the plan on or after the effective date of
the increase shall be deemed to constitute acceptance of such higher charge on
existing balances and any subsequent extension of credit under the plan.
D. C. Any application form or preapproved written
solicitation for an open-end credit card account to be used for personal,
family, or household purposes which is mailed on or after January 1, 1988, to a
consumer residing in this Commonwealth by or on behalf of a creditor, whether
or not the creditor is located in this Commonwealth, other than an application
form or solicitation included in a magazine, newspaper, or other publication
distributed by someone other than the creditor, shall contain or be accompanied
by any of the following disclosures:
1. A disclosure of each of the following if applicable:
a. Any periodic rate or rates that may be applied to the account, expressed as an annual percentage rate or rates. If the account is subject to a variable rate, the creditor may instead disclose the rate as of a specific date and indicate that the rate may vary, or identify the index and any amount or percentage added to, or subtracted from, that index and used to determine the rate.
b. Any membership or participation fee that may be imposed for availability of a credit card account.
c. Any transaction fee that may be imposed on purchases, or any other charge or fee that may be imposed, expressed as an amount or as a percentage of the transaction, as applicable.
d. Any grace period or free period during which the consumer may repay the full balance reflected on a billing statement which is attributable to purchases of goods or services from the creditor or from merchants participating in the credit card plan, without the imposition of additional finance charges. The creditor shall either disclose the number of days of that period, calculated from the closing date of the prior billing cycle to the date designated in the billing statement sent to the consumer as the date by which that payment must be received to avoid additional finance charges, or describe the manner in which the period is calculated. If the creditor does not provide such a period for purchases, the disclosure shall so indicate;
2. A disclosure that satisfies the initial disclosure requirements of Regulation Z; or
3. If a creditor is now or hereafter required under federal law to make disclosures of the terms applicable to a credit card account in connection with application forms or solicitations, the creditor shall be deemed to have complied with the requirements of this subsection if the creditor complies with the federal disclosure requirements. The disclosure of any transaction fee that may be imposed on purchases, or any other charge or fee, shall be written on any such application form or preapproved written solicitation.
E. Beginning after January 1, 1988, in the case of any plan in which the
charge authorized by this section is imposed on the average daily balance and
such balance is calculated under the plan without excluding purchases incurred
during the billing period, the issuer shall disclose to all new cardholders and
thereafter on the upper one-half of the periodic statement, the following in
letters at least equal in size to the letters used in the wording of the
minimum payment terms:
To avoid additional finance charges being applied to your current
purchases on next month's statement, pay the new balance on this statement in
full by the due date.
D. An open-end credit or similar plan between a seller or lender and an obligor shall be governed solely by federal law, and by the laws of the Commonwealth of Virginia unless otherwise expressly agreed in writing by the parties.