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HB 789

  • Virginia House Bill
  • 2020 Regular Session
  • Introduced in House Jan 07, 2020
  • Passed House Jan 31, 2020
  • Passed Senate Feb 26, 2020
  • Became Law Apr 22, 2020

Consumer lending; replaces references to payday loans with term 'short-term loans.'

Abstract

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 July 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 April 1, 2021. This bill is identical to SB 421.

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 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.

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 SB 421.

Consumer lending. Replaces references to payday loanswith the term "short-term loans." The measure caps the interest andfees that may be charged under a short-term loan at an annual rate of 36percent, plus a maintenance fee; increases the maximum amount of such loansfrom $500 to $2,500; and sets the duration of such loans at a minimum of fourmonths, subject to exceptions, and a maximum of 24 months. Short-term loanlicensees are required to make a reasonable attempt to verify a borrower'sincome and may not collect fees and charges that exceed 50 percent of theoriginal loan amount if such amount is equal to or less than $1,500 and 60percent of the original loan amount if such amount is greater than $1,500. Themeasure amends the requirements for motor vehicle title loans, includingrequiring licensed lenders to use a database to determine a prospectiveborrower's eligibility for a loan and prohibiting loans to a borrower who hasan outstanding short-term loan. The measure sets a 36-percent annual interestrate cap on open-end credit plans and allows a $50 annual participation fee. Aviolation of these provisions is made a prohibited practice under the VirginiaConsumer Protection Act. The measure amends provisions of the Consumer FinanceAct to, among other things, allow licensed lenders to use the services ofaccess partners and establish requirements that loans be between $300 and$35,000; be repayable in substantially equal installment payments; have a termof no fewer than six and no more than 120 months; charge not more than 36percent annual interest and a loan processing fee; and require licensees topost a bond. The measure prohibits credit service businesses from advertising,offering, or performing other services in connection with an extension ofcredit 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-endcredit plan. The measure has a delayed effective date of January 1, 2021.

Bill Sponsors (43)

Lamont Bagby

  • Democratic
  • lower
  • 74
Primary

Jeffrey M. Bourne

  • Democratic
  • lower
  • 71
Cosponsor

Mark H. Levine

  • Democratic
  • lower
  • 45
Cosponsor

Sam Rasoul

  • Democratic
  • lower
  • 11
Cosponsor

Jeion A. Ward

  • Democratic
  • lower
  • 92
Cosponsor

Lashrecse D. Aird

  • Democratic
  • lower
  • 63
Cosponsor

Alex Q. Askew

  • Democratic
  • lower
  • 85
Cosponsor

Hala S. Ayala

  • Democratic
  • lower
  • 51
Cosponsor

David L. Bulova

  • Democratic
  • lower
  • 37
Cosponsor

Betsy B. Carr

  • Democratic
  • lower
  • 69
Cosponsor

Joshua G. Cole

  • Democratic
  • lower
  • 28
Cosponsor

Karrie K. Delaney

  • Democratic
  • lower
  • 67
Cosponsor

Wendy W. Gooditis

  • Democratic
  • lower
  • 10
Cosponsor

Nancy D. Guy

  • Democratic
  • lower
  • 83
Cosponsor

Elizabeth R. Guzman

  • Democratic
  • lower
  • 31
Cosponsor

C.E. Cliff Hayes, Jr.

  • Democratic
  • lower
  • 77
Cosponsor

Dan I. Helmer

  • Democratic
  • lower
  • 40
Cosponsor

Steve E. Heretick

  • Democratic
  • lower
  • 79
Cosponsor

Charniele L. Herring

  • Democratic
  • lower
  • 46
Cosponsor

Patrick A. Hope

  • Democratic
  • lower
  • 47
Cosponsor

Chris L. Hurst

  • Democratic
  • lower
  • 12
Cosponsor

Clinton L. Jenkins

  • Democratic
  • lower
  • 76
Cosponsor

Mark L. Keam

  • Democratic
  • lower
  • 35
Cosponsor

Kaye Kory

  • Democratic
  • lower
  • 38
Cosponsor

Paul E. Krizek

  • Democratic
  • lower
  • 44
Cosponsor

Alfonso H. Lopez

  • Democratic
  • lower
  • 49
Cosponsor

Delores L. McQuinn

  • Democratic
  • lower
  • 70
Cosponsor

Martha M. Mugler

  • Democratic
  • lower
  • 91
Cosponsor

Michael P. Mullin

  • Democratic
  • lower
  • 93
Cosponsor

Kathleen Murphy

  • Democratic
  • lower
  • 34
Cosponsor

Kenneth R. Plum

  • Democratic
  • lower
  • 36
Cosponsor

Marcia S. "Cia" Price

  • Democratic
  • lower
  • 95
Cosponsor

Danica A. Roem

  • Democratic
  • lower
  • 13
Cosponsor

Ibraheem S. Samirah

  • Democratic
  • lower
  • 86
Cosponsor

Don L. Scott

  • Democratic
  • lower
  • 80
Cosponsor

Marcus B. Simon

  • Democratic
  • lower
  • 53
Cosponsor

Shelly A. Simonds

  • Democratic
  • lower
  • 94
Cosponsor

Suhas Subramanyam

  • Democratic
  • lower
  • 87
Cosponsor

Luke E. Torian

  • Democratic
  • lower
  • 52
Cosponsor

Kathy K.L. Tran

  • Democratic
  • lower
  • 42
Cosponsor

Roslyn C. Tyler

  • Democratic
  • lower
  • 75
Cosponsor

Schuyler T. VanValkenburg

  • Democratic
  • lower
  • 72
Cosponsor

Rodney T. Willett

  • Democratic
  • lower
  • 73
Cosponsor

Votes


Actions


Apr 22, 2020

House

Placed on Calendar

House

Enacted, Chapter 1215 (effective - see bill)

Senate

Signed by President as reenrolled

House

Signed by Speaker as reenrolled

House

Reenrolled bill text (HB789ER2)

House

Reenrolled

Office of the Governor

Governor's recommendation adopted

Senate

Senate concurred in Governor's recommendation (22-Y 18-N)

House

VOTE: (54-Y 41-N)

House

House concurred in Governor's recommendation (54-Y 41-N)

Apr 11, 2020

House

Governor's recommendation received by House

Mar 17, 2020

Office of the Governor

Governor's Action Deadline 11:59 p.m., April 11, 2020

House

Enrolled Bill communicated to Governor on March 17, 2020

Mar 12, 2020

House

Impact statement from DPB (HB789ER)

Senate

Signed by President

House

Signed by Speaker

House

Enrolled

Feb 26, 2020

House

VOTE: Adoption (62-Y 30-N)

House

Senate substitute agreed to by House 20108486D-S1 (62-Y 30-N)

Senate

Passed Senate with substitute (28-Y 12-N)

Senate

Engrossed by Senate - committee substitute HB789S1

Senate

Committee substitute agreed to 20108486D-S1

Senate

Reading of substitute waived

Senate

Read third time

Senate

Constitutional reading dispensed (38-Y 0-N)

Feb 25, 2020

Senate

Reported from Finance and Appropriations (14-Y 0-N)

Feb 19, 2020

House

Impact statement from DPB (HB789S1)

Feb 17, 2020

Senate

Rereferred to Finance and Appropriations

Senate

Committee substitute printed 20108486D-S1

Senate

Reported from Commerce and Labor with substitute (11-Y 4-N)

Feb 03, 2020

House

Impact statement from DPB (HB789EH1)

Senate

Referred to Committee on Commerce and Labor

Senate

Constitutional reading dispensed

Jan 31, 2020

House

VOTE: Passage (65-Y 33-N)

House

Read third time and passed House (65-Y 33-N)

Jan 30, 2020

House

Read second time

House

Printed as engrossed 20106372D-EH1

House

Engrossed by House - committee substitute with amendments HB789EH1

House

Amendments by Delegate Bagby agreed to

House

Committee substitute agreed to 20106372D-H1

House

House committee, floor amendments and substitutes offered

Jan 29, 2020

House

Passed by for the day

Jan 28, 2020

House

Passed by for the day

Jan 27, 2020

House

Read first time

Jan 24, 2020

House

Impact statement from DPB (HB789)

Jan 23, 2020

House

Reported from Labor and Commerce with substitute (14-Y 8-N)

House

Incorporates HB843 (Murphy)

House

Incorporates HB184 (Levine)

House

Incorporates HB1296 (Helmer)

House

Incorporates HB1265 (Carroll Foy)

House

Committee substitute printed 20106372D-H1

House

House committee, floor amendments and substitutes offered

Jan 07, 2020

House

Referred to Committee on Labor and Commerce

House

Prefiled and ordered printed; offered 01/08/20 20104677D

Bill Text

Bill Text Versions Format
HB789H1 HTML
Engrossed by House - committee substitute with amendments HB789EH1 HTML
Impact statement from DPB (HB789S1) HTML
Bill text as passed House and Senate (HB789ER) HTML
Reenrolled bill text (HB789ER2) HTML
Acts of Assembly Chapter text (CHAP1215) HTML

Related Documents

Document Format
Amendment: HB789AH HTML
Amendment: HB789AG HTML

Sources

Data on Open States is updated nightly from the official website of the Virginia General Assembly.

If you notice any inconsistencies with these official sources, feel free to file an issue.