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2020 SESSION
SB 421 Consumer lending; replaces references to payday loans with term "short-term loans."
Introduced by: Mamie E. Locke | all patrons ... notes | add to my profiles
SUMMARY AS ENACTED WITH GOVERNOR'S RECOMMENDATION: (all summaries)
Consumer lending. Replaces references to payday loans with the term "short-term loans." The measure caps the interest and fees that may be charged under a short-term loan at an annual rate of 36 percent, plus a maintenance fee; increases the maximum amount of such loans from $500 to $2,500; and sets the duration of such loans at a minimum of four months, subject to exceptions, and a maximum of 24 months. Short-term loan licensees are required to make a reasonable attempt to verify a borrower's income and may not collect fees and charges that exceed 50 percent of the original loan amount if such amount is equal to or less than $1,500 and 60 percent of the original loan amount if such amount is greater than $1,500. The measure amends the requirements for motor vehicle title loans, including requiring licensed lenders to use a database to determine a prospective borrower's eligibility for a loan and prohibiting loans to a borrower who has an outstanding short-term loan. The measure sets a 36-percent annual interest rate cap on open-end credit plans and allows a $50 annual participation fee. A violation of these provisions is made a prohibited practice under the Virginia Consumer Protection Act. The measure amends provisions of the Consumer Finance Act to, among other things, allow licensed lenders to use the services of access partners and establish requirements that loans be between $300 and $35,000; be repayable in substantially equal installment payments; have a term of no fewer than six and no more than 120 months; charge not more than 36 percent annual interest and a loan processing fee; and require licensees to post a bond. The measure prohibits credit service businesses from advertising, offering, or performing other services in connection with an extension of credit that has an annual interest rate exceeding 36 percent, is for less than $5,000, has a term of less than one year, or is provided under an open-end credit plan. The bill has a delayed effective date of January 1, 2021, and requires any person who would be required to be licensed under the provisions of the act to apply for a license by October 1, 2020. This bill is identical to HB 789.
FULL TEXT
- 01/07/20 Senate: Prefiled and ordered printed; offered 01/08/20 20104657D pdf | impact statement
- 01/27/20 Senate: Committee substitute printed 20106645D-S1 pdf | impact statement
- 02/06/20 Senate: Printed as engrossed 20106645D-ES1 pdf | impact statement
- 03/07/20 Senate: Bill text as passed Senate and House (SB421ER) pdf | impact statement
- 04/22/20 Senate: Reenrolled bill text (SB421ER2) pdf
- 04/22/20 Governor: Acts of Assembly Chapter text (CHAP1258) pdf
AMENDMENTS
HISTORY
- 01/07/20 Senate: Prefiled and ordered printed; offered 01/08/20 20104657D
- 01/07/20 Senate: Referred to Committee on Commerce and Labor
- 01/27/20 Senate: Reported from Commerce and Labor with substitute (11-Y 4-N)
- 01/27/20 Senate: Incorporates SB37 (Surovell)
- 01/27/20 Senate: Incorporates SB38 (Surovell)
- 01/27/20 Senate: Committee substitute printed 20106645D-S1
- 01/27/20 Senate: Rereferred to Finance and Appropriations
- 02/04/20 Senate: Reported from Finance and Appropriations with amendments (11-Y 5-N)
- 02/05/20 Senate: Constitutional reading dispensed (40-Y 0-N)
- 02/06/20 Senate: Read second time
- 02/06/20 Senate: Reading of substitute waived
- 02/06/20 Senate: Committee substitute agreed to 20106645D-S1
- 02/06/20 Senate: Reading of amendments waived
- 02/06/20 Senate: Committee amendments agreed to
- 02/06/20 Senate: Engrossed by Senate - committee substitute with amendments SB421ES1
- 02/06/20 Senate: Printed as engrossed 20106645D-ES1
- 02/07/20 Senate: Passed by for the day
- 02/10/20 Senate: Engrossment reconsidered by Senate (39-Y 0-N)
- 02/10/20 Senate: Reading of amendment waived
- 02/10/20 Senate: Amendment by Senator Norment rejected (18-Y 21-N)
- 02/10/20 Senate: Reengrossed by Senate as amended SB421ES1
- 02/10/20 Senate: Constitutional reading dispensed (39-Y 0-N)
- 02/10/20 Senate: Passed Senate (23-Y 16-N)
- 02/13/20 House: Placed on Calendar
- 02/13/20 House: Read first time
- 02/13/20 House: Referred to Committee on Labor and Commerce
- 02/18/20 House: Reported from Labor and Commerce (13-Y 8-N)
- 02/20/20 House: Read second time
- 02/21/20 House: Passed by for the day
- 02/21/20 House: Motion to reconsider pass by for the day agreed to
- 02/21/20 House: Read third time
- 02/21/20 House: Passed House (61-Y 36-N)
- 02/21/20 House: VOTE: Passage (61-Y 36-N)
- 03/07/20 Senate: Enrolled
- 03/07/20 Senate: Bill text as passed Senate and House (SB421ER)
- 03/07/20 Senate: Signed by President
- 03/08/20 House: Signed by Speaker
- 03/12/20 Senate: Enrolled Bill Communicated to Governor on March 12, 2020
- 03/12/20 Governor: Governor's Action Deadline 11:59 p.m., April 11, 2020
- 04/11/20 Senate: Governor's recommendation received by Senate
- 04/22/20 Senate: Senate concurred in Governor's recommendation (21-Y 18-N)
- 04/22/20 Senate: Reconsideration of Governor's recommendation agreed to (40-Y 0-N)
- 04/22/20 Senate: Senate rejected Governor's recommendation (19-Y 21-N)
- 04/22/20 Senate: Reconsideration of Governor's recommendation agreed to (37-Y 0-N)
- 04/22/20 Senate: Senate concurred in Governor's recommendation (22-Y 18-N)
- 04/22/20 House: House concurred in Governor's recommendation (52-Y 33-N)
- 04/22/20 House: VOTE: (52-Y 33-N)
- 04/22/20 Governor: Governor's recommendation adopted
- 04/22/20 Senate: Reenrolled
- 04/22/20 Senate: Reenrolled bill text (SB421ER2)
- 04/22/20 Senate: Signed by President as reenrolled
- 04/22/20 House: Signed by Speaker as reenrolled
- 04/22/20 House: Enacted, Chapter 1258 (effective - see bill)
- 04/22/20 Governor: Acts of Assembly Chapter text (CHAP1258)