H. B. 3092
(By Delegates Mezzatesta, Williams,
Stemple and Keener)
[Introduced March 29, 2001; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact section one hundred ten-a, article
four, chapter forty-six-a of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
prohibiting a regulated lender from crediting a consumer loan
or account with a payment or deposit on a date other than the
earliest of the date upon which the payment or deposit was
posted to the lender with the U.S. postal service or the
payment or deposit was received by the lender; and limiting
regulated lenders from assessing loan late fees and issuing
inappropriate credit reports, under certain circumstances.
Be it enacted by the Legislature of West Virginia:
That section one hundred ten-a, article four, chapter
forty-six-a of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted to read as
follows:
ARTICLE 4. REGULATED CONSUMER LENDERS.
§46A-4-110a. Prohibited conduct.
(1) A regulated consumer lender shall not:
(a) Accept or receive deposits or sell or offer for sale its
secured or unsecured evidences or certificates of indebtedness;
(b) Pay any fees, bonuses, commissions, rewards or other
consideration to any person, firm or corporation for the privilege
of using any plan of operation, scheme or device for the
organization or carrying on of business under this article, or the
use of any name, trademark or copyright to be so used:
Provided,
That nothing herein prevents a regulated consumer lender from
agreeing in connection with a loan to pay a broker fee, finders fee
or dealer participation fee, or to split the origination fee or
points paid:
Provided, however, That the fee or fee split is
disclosed to the borrower and where proper is included in the
finance charge; or
(c) Fail to disclose the amount of a payoff of an existing
loan within three business days of receiving a request for such
information from either the borrower or an agent acting on behalf
of the borrower.
(d) Fail to credit a mortgage loan, consumer loan or account
with a payment or a deposit on a date which is the earliest of the
date upon which it was posted to the consumer lender.
(e) Charge a late charge or penalty, declare a forfeiture or
a default, or make a report to a credit agency adverse to the credit of the consumer if, at the time a payment date was missed,
the consumer, in the case of a mortgage, credit card, loan or
installment obligation, the consumer has paid at least one payment
in advance and, in the case of a credit card, the consumer has paid
at least two minimum payments within the previous month.
(f) Fail to credit payment made in person at a bank on the
actual day and time the payment is received.
(2) Unless preempted by federal law, no consumer loan by a
regulated consumer lender may contain any scheduled balloon payment
as set forth in this chapter. Nor may any regulated consumer
lender loan contain terms of repayment which result in negative
amortization:
Provided, That nothing herein prevents unequal
payment schedules resulting from a variable rate loan or a
revolving line of credit.
(3) A regulated consumer lender may not make revolving loans
for the retail purchase of consumer goods and services by use of a
lender credit card.
NOTE: The purpose of this bill is to prevent lenders from
unreasonably assessing late charges and from creating credit
problems for consumers.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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