HB789
Consumer lending; replaces references to payday loans with term 'short-term loans.'
Summary
As Passed House of Origin. 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 ... (More) 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 setting the duration of such loans at a minimum of six months, subject to exceptions, and a maximum of 24 months and prohibiting motor vehicle loans for amounts greater than §2,500. 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 measure has a delayed effective date of January 1, 2021. (Less)-
Bill History
- 01/07/2020 - House: Prefiled and ordered printed; offered 01/08/20 20104677D
- 01/07/2020 - House: Referred to Committee on Labor and Commerce
- 01/23/2020 - House: House committee, floor amendments and substitutes offered
- 01/23/2020 - House: Reported from Labor and Commerce with substitute (14-Y 8-N)
- 01/23/2020 - House: Committee substitute printed 20106372D-H1
- 01/23/2020 - House: Incorporates HB1265 (Carroll Foy)
- 01/23/2020 - House: Incorporates HB1296 (Helmer)
- 01/23/2020 - House: Incorporates HB184 (Levine)
- 01/23/2020 - House: Incorporates HB843 (Murphy)
- 01/24/2020 - House: Impact statement from DPB (HB789)
- 01/27/2020 - House: Read first time
- 01/28/2020 - House: Passed by for the day
- 01/29/2020 - House: Passed by for the day
- 01/30/2020 - House: House committee, floor amendments and substitutes offered
- 01/30/2020 - House: Read second time
- 01/30/2020 - House: Committee substitute agreed to 20106372D-H1
- 01/30/2020 - House: Amendments by Delegate Bagby agreed to
- 01/30/2020 - House: Engrossed by House - committee substitute with amendments HB789EH1
- 01/30/2020 - House: Printed as engrossed 20106372D-EH1
- 01/31/2020 - House: Read third time and passed House (65-Y 33-N)
- 01/31/2020 - House: VOTE: Passage (65-Y 33-N) Close Floor Vote
- 02/03/2020 - House: Impact statement from DPB (HB789EH1)
- 02/03/2020 - Senate: Constitutional reading dispensed
- 02/03/2020 - Senate: Referred to Committee on Commerce and Labor
- 02/17/2020 - Senate: Reported from Commerce and Labor with substitute (11-Y 4-N)
- 02/17/2020 - Senate: Committee substitute printed 20108486D-S1
- 02/17/2020 - Senate: Rereferred to Finance and Appropriations
- 02/19/2020 - House: Impact statement from DPB (HB789S1)
- 02/25/2020 - Senate: Reported from Finance and Appropriations (14-Y 0-N)
- 02/26/2020 - House: VOTE: Adoption (62-Y 30-N)
- 02/26/2020 - Senate: Constitutional reading dispensed (38-Y 0-N)
- 02/26/2020 - Senate: Read third time
- 02/26/2020 - Senate: Reading of substitute waived
- 02/26/2020 - Senate: Committee substitute agreed to 20108486D-S1
- 02/26/2020 - Senate: Engrossed by Senate - committee substitute HB789S1
- 02/26/2020 - Senate: Passed Senate with substitute (28-Y 12-N)
- 02/26/2020 - House: Senate substitute agreed to by House 20108486D-S1 (62-Y 30-N)
- 03/12/2020 - House: Enrolled
- 03/12/2020 - House: Bill text as passed House and Senate (HB789ER)
- 03/12/2020 - House: Impact statement from DPB (HB789ER)
- 03/12/2020 - House: Signed by Speaker
- 03/12/2020 - Senate: Signed by President
- 03/17/2020 - House: Enrolled Bill communicated to Governor on March 17, 2020
- 03/17/2020 - Governor: Governor's Action Deadline 11:59 p.m., April 11, 2020
- 04/11/2020 - House: Governor's recommendation received by House
- 04/22/2020 - House: Placed on Calendar
- 04/22/2020 - House: House concurred in Governor's recommendation (54-Y 41-N)
- 04/22/2020 - House: VOTE: (54-Y 41-N) Close Floor Vote
- 04/22/2020 - Senate: Senate concurred in Governor's recommendation (22-Y 18-N) Close Floor Vote
- 04/22/2020 - Governor: Governor's recommendation adopted
- 04/22/2020 - House: Reenrolled
- 04/22/2020 - House: Reenrolled bill text (HB789ER2)
- 04/22/2020 - House: Signed by Speaker as reenrolled
- 04/22/2020 - Senate: Signed by President as reenrolled
- 04/22/2020 - House: Enacted, Chapter 1215 (effective - see bill)
- 04/22/2020 - Governor: Acts of Assembly Chapter text (CHAP1215)
