H. B.2551
(By Delegate Perdue)
[Introduced February 21, 2005; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact §46A-4-101 of the code of West
Virginia, 1931, as amended, relating to prohibiting
out-of-state lenders from making loans over the internet or by
other means unless they are licensed in West Virginia or
otherwise authorized by law.
Be it enacted by the Legislature of West Virginia:
That §46A-4-101 of the code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 4. REGULATED CONSUMER LENDERS.
§46A-4-101. Authority to make loans.
(a) Unless a person has first obtained a license from the
commissioner authorizing him or her to make regulated consumer
loans in this State, he or she shall not engage in the business of:
(1) Making regulated consumer loans in this State; or
(2) Taking assignments of and undertaking direct collection of payments from or enforcement of rights against consumers arising
from regulated consumer loans
made in this State.
(b) For purposes of this section, "regulated consumer loans"
has the meaning ascribed to it in section one hundred two, article
one of this chapter.
(c) For purposes of this section a consumer credit transaction
is made in this State if:
(1) A signed writing evidencing the obligation or offer of the
consumer is received by the creditor in this State; or
(2) The creditor induces the consumer who is a resident of
this State to enter into the transaction by solicitation in this
State by any means, including, but not limited to, mail, telephone,
radio, television, e-mail, pop-up web pages or any other electronic
means: Provided, That a loan that was solicited in this State as
described in this paragraph is not a loan made in this State if the
consumer is physically present in another state when the consumer
delivers a signed writing to the creditor at its place of business
in that other state.
NOTE: The purpose of this bill is to prohibit internet and
other out-of-state lenders from making loans to citizens in West
Virginia without a license unless otherwise authorized by law.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.