Banking and Finance

Passed

P HB195

Industrial loan companies. Prohibits a foreign industrial loan company from establishing or maintaining an office in Virginia on the premises or property of the company's affiliate if the affiliate engages in retail commercial activities. The measure also prohibits a Virginia-chartered industrial loan association from having an affiliate that engages in retail commercial activities; however, the prohibition does not apply to an industrial loan association with an affiliate engaged in commercial activities as of January 1, 2006.
Patron - Kilgore

P HB324

Tax refund anticipation loans. Requires persons who facilitate tax refund anticipation loans to post their fees and related information and to provide a disclosure form. Borrowers are allowed to rescind such loans before the close of the next day of business following the date of the loan. Facilitators are prohibited from requiring customers to enter into a loan arrangement. Violations are prohibited practices under the Virginia Consumer Protection Act.
Patron - Morgan

P HB360

Bankers' banks. Authorizes bankers' banks to accept deposits from and make loans to (i) a bank in organization that has applied for insurance of deposits by a federal agency, (ii) officers, directors, and employees of such a bank in organization, (iii) persons referred to a bankers' bank by a financial institution or by a bank in organization that has applied for insurance of deposits by a federal agency, and (iv) other persons with the prior approval of the Commissioner of Financial Institutions and subject to such conditions as the Commissioner may impose.
Patron - Kilgore

P HB698

Mortgage brokers; dual compensation; penalties. Provides that a state bank or mortgage lender that, pursuant to an executed originating agreement with the Virginia Housing Development Authority (VHDA), acts as an originating agent of the VHDA in connection with a mortgage loan shall not be deemed to be acting as a mortgage broker with respect to such mortgage loan.
Patron - Suit

P HB1077

Construction loans by banks. Removes an obsolete reference to the maximum 40-year and two-month amortization period for loans secured by real estate. The requirement for minimum amortization periods in real estate loans was repealed in 2005.
Patron - Dudley

P SB529

Credit unions; charges on loans. Authorizes credit unions to impose finance charges and other charges and fees on open-end credit plans at such rates and in such amounts and manner as the credit union and the borrower may agree when payment is not timely received.
Patron - Newman

P SB530

Credit union offices. Provides that a credit union's notice to the Commissioner of Financial Institutions of its participation in a credit union service organization (CUSO) satisfies the requirement that notice be given of the establishment of an office at a shared service facility, if the CUSO has notified the Commissioner of the establishment of the shared service facility.
Patron - Newman

P SB531

Credit unions; minors' accounts. Authorizes credit unions to take actions with respect to share accounts of a minor on the order of the minor. The minor's parent or guardian will not have the power to withdraw or transfer shares in such an account unless the minor has notified the credit union to accept the signature of the parent or guardian.
Patron - Newman

Failed

F HB225

Payday lending; rollovers; database. Requires the State Corporation Commission on or before July 1, 2007, to contract with a third party to establish and administer a database with real-time access through an Internet connection to ensure compliance with the Payday Loan Act. The measure also prohibits payday lenders from entering into a payday loan with a person who has an outstanding payday loan with that licensee or affiliate or with any other payday lender, or with a person whose previous payday loan has been terminated for less than 30 days, and from extending or continuing a payday loan where the lender continues to hold the borrower's check or substitutes a new check. This bill was incorporated into HB 912.
Patron - Jones, D.C.

F HB626

Payday loans; term. Increases the minimum term of a payday loan from seven to 60 days. Provisions requiring the posting of fees for sample loans are amended to reflect the extended minimum term. This bill was incorporated into HB 912.
Patron - Johnson

F HB912

Payday loan act. Requires the State Corporation Commission on or before July 1, 2007, to contract with a third party to establish and administer a database with real-time access through an Internet connection to ensure compliance with the Payday Loan Act. The measure also (i) increases the minimum length of a payday loan from seven to 15 days; (ii) prohibits a payday lender from making a payday loan to a borrower if the borrower has another payday loan outstanding or within 48 hours following the borrower's payment of another payday loan; (iii) making a payday loan to a borrower if the proceeds of the payday loan will be used in whole or in part to repay an outstanding payday loan; (iv) prohibits a lender from instituting collection proceedings against a borrower until 60 days after the date of default; (v) prohibits a lender from engaging in any unfair, misleading, deceptive, or fraudulent acts or practices in the making or collecting of a payday loan; (vi) requires a lender, when collecting or attempting to collect a payday loan when the check given as security for such loan is dishonored, to comply with the provisions of the Fair Debt Collection Practices Act that apply to debt collectors; (vii) increases the maximum fine or penalty for a violation from $1,000 to $2,500; and (viii) provides that any provision of a written loan agreement that violates the Payday Loan Act is unenforceable against the borrower.
Patron - Oder

F HB1190

Mortgage loans; escrow accounts. Prohibits a lender making a one-to-four family residential dwelling mortgage loan from charging the borrower a separate fee for exercising an option to make payments for real estate taxes and insurance premiums directly, in lieu of establishing an escrow account.
Patron - Marshall, R.G.

F SB266

Identity theft; security freezes; penalty. Authorizes any consumer to freeze access to his credit report. If a consumer has placed a freeze on his credit report, a consumer reporting agency is prohibited from releasing the credit report, or any information in it, without the consumer's express authorization. The measure provides a means by which a consumer can release his report, permanently, temporarily, or to a specific third party. Consumer reporting agencies may charge a consumer up to $10 for each freeze or removal. Certain disclosures are exempt from the freeze. A violation is a prohibited practice under the Consumer Protection Act.
Patron - Bell

Carried Over

C HB325

Motor vehicle title loans. Caps the rate of interest that may be charged on loans secured by a motor vehicle title at 36 percent per year.
Patron - Morgan

C HB330

Annual reporting of revenue from credit card affinity agreements. Requires each public four-year institution of higher education in the Commonwealth to report annually on its credit card affinity agreements and related arrangements, and to disclose the revenue received by the institution under such agreements.
Patron - Purkey

C HB619

Financial Institutions; pay day lenders. Repeals the Pay Day Loan Act.
Patron - O'Bannon

C HB1514

Motor vehicle equity loans; penalties. Establishes a system for licensing and regulating revolving lines of credit secured by equity in a motor vehicle. The maximum amount of a motor vehicle line of credit is $10,000. Interest and fees may be imposed at such rates as may be agreed upon by the lender and borrower. Lenders are required to be licensed with the State Corporation Commission. A violation of the measure is a prohibited practice under the Consumer Protection Act. Violators are subject to civil and criminal penalties. Making unlicensed motor vehicle equity loans, or arranging or brokering motor vehicle equity loans, is punishable as a Class 1 misdemeanor.
Patron - Kilgore

C SB145

Mortgage loan servicing practices; penalties. Prohibits persons that service mortgage loans from taking certain actions with respect to mortgage loans, including failing to apply promptly to the loan payments made in accordance with the terms of the loan agreement and taking actions for the primary purpose of creating a default under the terms of a mortgage loan. A violation constitutes a Class 1 misdemeanor. The State Corporation Commission is authorized to conduct investigations. The measure does not apply to banks or savings institutions or their subsidiaries or affiliates.
Patron - Deeds

C SB598

Motor vehicle equity loans; penalties. Regulates motor vehicle equity loans, which are closed-end loans secured by an interest in a motor vehicle. The measure caps the interest on such loans at 20 percent per month for the first two months and 3 percent for the balance of the term. If such a loan is repaid in full within 48 hours, the loan shall not bear interest. The maximum term of such a loan is 12 months. The maximum amount of a motor vehicle equity loan is 50 percent of the value of the motor vehicle. Lenders are required to be licensed with the State Corporation Commission. A violation of the measure is a prohibited practice under the Consumer Protection Act. Violators are subject to civil and criminal penalties. Making unlicensed motor vehicle equity loans, or arranging or brokering motor vehicle equity loans, is punishable as a Class 1 misdemeanor.
Patron - Bell

CONTENTS | < PREVIOUS | NEXT > | BILL INDEX

General Assembly>Division of Legislative Services>Publications>Session Summaries>2006>Banking and Finance

E-mail Webmaster