General Assembly>Division of Legislative Services>Publications>Session Summaries>2007>Banking and Finance


CONTENTS | < PREVIOUS | NEXT > | BILL INDEX

Banking and Finance

Passed

P HB 1657

Banks; financial activities. Prohibits a bank from establishing or maintaining a branch in Virginia on the premises or property of an affiliate if the affiliate engages in commercial activities, which are defined as activities in which a bank holding company, a financial holding company, a national bank, or a national bank financial subsidiary may not engage under federal law. The measure repeals provisions regarding the commercial activities of industrial loan associations and industrial loan companies. The measure will be effective upon passage.
Patron - Kilgore

P SB 745

CRESPA; settlement agents; convicted felons. Prohibits any person who has been convicted of a felony, unless he has had his civil liberties restored, been pardoned, or granted a writ of actual innocence, from acting as a settlement agent under the Consumer Real Estate Settlement Protection Act. Persons convicted of a felony involving fraud, deceit or misrepresentation are also prohibited from working for settlement agents in a capacity involving the receipt or disbursement of funds from real estate settlements.
Patron - Williams

Failed

F HB 1621

Payday Loan Act. Requires the State Corporation Commission, on or before July 1, 2008, 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. Lenders are prohibited from making a payday loan unless they have obtained information from the database, or other permitted verification source, that the borrower does not have three or more outstanding payday loans and has not terminated a payday loan within 48 hours. The measure also (i) prohibits a payday lender from making a payday loan to a borrower if the borrower has three or more other payday loans outstanding or within 48 hours following the borrower's termination of a payday loan; (ii) prohibits a lender from instituting collection proceedings against a borrower until 60 days after the date of default; (iii) prohibits a lender from engaging in any unfair, misleading, deceptive, or fraudulent acts or practices in the making or collecting of a payday loan; (iv) 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; (v) authorizes the Commission to impose a penalty on a person who violates any regulation promulgated by the Commission pursuant to the Payday Loan Act or other law or regulation applicable to the conduct of the lender's business; and (vi) provides that any provision of a written loan agreement that violates the Payday Loan Act is unenforceable against the borrower. This bill was incorporated into HB 2563.
Patron - Oder

F HB 1684

Payday Loan Act. Repeals the Payday Loan Act effective July 1, 2009.
Patron - McClellan

F HB 1799

Payday lending charges. Establishes a maximum annual interest rate for payday loans of 36%. Currently, payday lenders may charge a fee of 15% of the loan proceeds advanced, and as a result the annual percentage rate of interest charged depends on the term of the loan. This bill was incorporated into HB 2563.
Patron - Cosgrove

F HB 1813

Payday Loan Act. Requires the State Corporation Commission, on or before July 1, 2008, 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. Lenders are prohibited from making a payday loan unless they have obtained information from the database, or other permitted verification source, that the borrower does not have two or more outstanding payday loans from one or more lenders. The maximum fee that may be charged in a payday loan is reduced from 15% to 7.5% of the amount advanced. This bill was incorporated into HB 2563.
Patron - Dance

F HB 1955

Payday Loan Act. Requires the State Corporation Commission, on or before July 1, 2008, 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. Lenders are prohibited from making a payday loan unless they have obtained information from the database, or other permitted verification source, that the borrower does not have any outstanding payday loans and has not terminated a payday loan within 48 hours. The maximum fee that may be charged in a payday loan is reduced from 15% to 10% of the amount advanced. The measure also (i) prohibits a payday lender from making a payday loan to a borrower if the borrower has a payday loan outstanding or has terminated a payday loan within the preceding 48 hours; (ii) prohibits a lender from instituting collection proceedings against a borrower until 60 days after the date of default; (iii) prohibits a lender from engaging in any unfair, misleading, deceptive, or fraudulent acts or practices in the making or collecting of a payday loan; (iv) 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; (v) authorizes the Commission to impose a penalty on a person who violates any regulation promulgated by the Commission pursuant to the Payday Loan Act or other law or regulation applicable to the conduct of the lender's business; (vi) provides that any provision of a written loan agreement that violates the Payday Loan Act is unenforceable against the borrower; and (vii) prohibits making payday loans to members of the military or their spouses. This bill was incorporated into HB 2563.
Patron - Morgan

F HB 1956

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

F HB 2000

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. The measure will become effective October 1, 2007.
Patron - Kilgore

F HB 2002

Bank account balances of deceased persons. Increases the amount in a deceased person's bank account that the bank may distribute to the person's spouse or distributee, after 60 days following the person's death, if there has been no qualification on the person's estate, from $15,000 to the amount established as the value of personal probate estates for which certain actions are authorized under the Virginia Small Estate Act, which amount is currently $50,000.
Patron - Kilgore

F HB 2112

Access to safe-deposit boxes. Requires a safe-deposit company or bank to permit the spouse or next of kin of a deceased lessee of a safe-deposit box, or a court clerk or other interested person, to have access to the decedent's safe deposit box for the limited purpose of looking for a will or other testamentary instrument. Currently, the safe-deposit company or bank may, but is not required, to allow such persons access to the lessee's safe-deposit box.
Patron - Carrico

F HB 2159

Payday Loan Act. Repeals the Payday Loan Act effective July 1, 2008.
Patron - O'Bannon

F HB 2243

Payday Loan Act. Repeals the Payday Loan Act.
Patron - Howell, A.T.

F HB 2563

Payday Loan Act. Requires the State Corporation Commission, by July 1, 2008, to certify and contract with one or more third parties to develop, implement, and maintain an Internet-accessible database, and requires payday lenders to query the database prior to making any loan to determine whether an applicant is eligible for the loan. Fifty cents may be charged to defray the costs of using the database. A payday lender is prohibited from making a payday loan to a person who has terminated a payday loan on the loan application date, or if the loan would cause the borrower to have more than three payday loans outstanding at the same time. Payday lenders are prohibited from knowingly making loans to a member of the military service or to the spouse of such person. If a borrower obtains three or more consecutive payday loans, the borrower may enter into an extended payment plan, which allows the borrower to repay the loan in at least two equal installments over 60 days. The installments may be secured by three checks written by the borrower. Other provisions (i) prohibit a lender from engaging in any unfair, misleading, deceptive, or fraudulent acts or practices in the making or collecting of a payday loan; (ii) require 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 certain restrictions and prohibitions contained in the Fair Debt Collection Practices Act; (iii) provide that any provision of a written loan agreement that violates the Payday Loan Act is unenforceable against the borrower; (iv) state that the provisions of the Payday Loan Act apply to Internet lenders; and (vi) allow licensees to secure payday loans with the borrower's electronic debit authorization. This bill incorporates HB 1621, HB 1799, HB 1813, and HB 1955.
Patron - Ware, R.L.

F HB 2819

Payday loans; notice of alternative lenders. Requires licensed payday lenders to place a signboard at each licensed payday lending location on which not-for-profit charitable organizations that are willing to make unsecured loans of up to $500 may post a notice advising persons about their alternative to payday loans. In addition, licensed payday lenders are required to allow financial institutions to place brochures or pamphlets regarding alternative loan programs within payday lending locations.
Patron - Sickles

F HB 3104

Loans to members of the armed services. Prohibits creditors from making consumer loans to active duty members of the armed services or their dependents at an interest rate that exceeds an annual percentage rate of 36%. The measure prohibits certain other practices with respect to consumer loans to covered service members and their dependents, including making a loan without reasonable grounds for believing that the service member has the ability to repay the loan, securing the loan with a personal check held for future deposit or electronic access to a bank account, and securing a nonpurchase money loan with a lien on the title to a motor vehicle.
Patron - Nutter

F SB 989

Mortgage loan servicing; penalties. Prohibits servicers of mortgage loans from taking certain actions pertaining to the servicing of such loans, including failing to apply payments to the loan and taking actions for the primary purpose of creating a default under the terms of a mortgage loan. The Bureau of Financial Institutions of the State Corporation Commission is given authority to investigate and enforce the provisions under the Mortgage Lender and Broker Act; although mortgage servicers are not required to obtain licenses under that Act.
Patron - Deeds

F SB 1014

Payday Loan Act. Requires the State Corporation Commission, by July 1, 2008, to certify and contract with one or more third parties to develop, implement, and maintain an Internet-accessible database, and requires payday lenders to query the database prior to making any loan to determine whether an applicant is eligible for the loan. Fifty cents may be charged to defray the costs of using the database. A payday lender is prohibited from making a payday loan to a person who has terminated a payday loan on the loan application date, or if the loan would cause the borrower to have more than three payday loans outstanding at the same time. Payday lenders are prohibited from knowingly making loans to a member of the military service or to the spouse of such person. If a borrower obtains three or more consecutive payday loans, the borrower may enter into an extended payment plan, which allows the borrower to repay the loan in at least two equal installments over 60 days. However, if a borrower has entered into two or more extended payment plans within the preceding 12 months, then the borrower may enter into an extended payment plan with the lender, regardless of whether it is his third consecutive loan. The installments may be secured by three checks written by the borrower. A payday loan may not be made to a borrower in an extended payment plan. Lenders are required to post a signboard where certain nonprofit lenders may post information about alternatives to payday loans. Other provisions (i) prohibit a lender from engaging in any unfair, misleading, deceptive, or fraudulent acts or practices in the making or collecting of a payday loan; (ii) require 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 certain restrictions and prohibitions contained in the Fair Debt Collection Practices Act; (iii) provide that any provision of a written loan agreement that violates the Payday Loan Act is unenforceable against the borrower; (iv) state that the provisions of the Payday Loan Act apply to Internet lenders; and (v) allow licensees to secure payday loans with the borrower's electronic debit authorization.
Patron - Saslaw

F SB 1109

Banks; financial activities. Prohibits a bank from establishing or maintaining a branch in Virginia on the premises or property of an affiliate if the affiliate engages in commercial activities, which are defined as activities in which a bank holding company, a financial holding company, a national bank, or a national bank financial subsidiary may not engage under federal law. The measure repeals provisions regarding the commercial activities of industrial loan associations and industrial loan companies. The measure will be effective upon passage.
Patron - Wampler

F SB 1320

Payday Loan Act. Repeals the Payday Loan Act.
Patron - Locke

F SB 1326

Payday Loan Act. Repeals the Payday Loan Act effective January 1, 2009.
Patron - Stosch

CONTENTS | < PREVIOUS | NEXT > | BILL INDEX


General Assembly>Division of Legislative Services>Publications>Session Summaries>2007>Banking and Finance

© 2007 Division of Legislative Services.

E-mail Webmaster