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Introduced Version House Bill 2551 History

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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:


§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.
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