Introduced Version
Senate Bill 98 History
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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 98
(By Senators Edgell and Rowe)
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[Introduced January 14, 2004; referred to the Committee on
Banking and Insurance; and then to the Committee on Finance.]
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A BILL to amend
the code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §46A-2-140,
relating
to prohibiting engaging in the business of brokering cash
advances or loans
using checks or account debits for security
for loan or cash advances made for personal, family or
household purposes.
Be it enacted by the Legislature of West Virginia:
That
the code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §46A-2-140,
to read as
follows:
ARTICLE 2. CONSUMER CREDIT PROTECTION.
§46A-2-140. Use of checks, drafts or debit authorizations as
security prohibited.
(a) No person may engage in the business of making, arranging,
acting as a middleman or brokering cash advances or loans to persons for a personal, family or household purpose pursuant to
agreements under which checks, share drafts or any authorization to
debit accounts of consumers are used as security or as any direct
or indirect part of the transaction for the advances, loans or
extensions of credit, and the payment of the checks, share drafts
or the debit of the accounts is deferred.
(b) Acting in violation of this section is unconscionable
conduct within the meaning of article five of this chapter and is
an unfair and deceptive practice under article six of this chapter.
Any agreement in violation of this section is void and
unenforceable.
NOTE: The purpose of this bill is to prevent the taking of
checks or similar instruments to guarantee loans or cash advances
for personal, family or household purposes
.
This section is new; therefore, strike-throughs and
underscoring have been omitted.