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Introduced Version House Bill 2803 History

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Key: Green = existing Code. Red = new code to be enacted
H. B. 2803


(By Delegate Reynolds, Moore and Miley)

[Introduced February 25, 2009; referred to the

Committee on Banking and Insurance then the Judiciary.]





A BILL to amend and reenact §46A-6C-7 of the Code of West Virginia, 1931, as amended, relating to credit service organizations; and limiting fees to not more than twenty-five percent of total debt owed by buyer.

Be it enacted by the Legislature of West Virginia:

That §46A-6C-7 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:

ARTICLE 6C. CREDIT SERVICES ORGANIZATIONS.

§46A-6C-7. Form and terms of contract.

(a) Each contract between the buyer and a credit services organization for the purchase of the services of the credit services organization must be in writing, dated, signed by the buyer, and must include:
(1) A statement in type that is boldfaced, capitalized, underlined, or otherwise set out from surrounding written materials so as to be conspicuous, in immediate proximity to the space reserved for the signature of the buyer, as follows: "You, the buyer, may cancel this contract at any time before midnight of the third day after the date of the transaction. See the attached notice of cancellation form for an explanation of this right";
(2) The terms and conditions of payment, including the total of all payments to be made by the buyer, whether to the credit services organization or to another person: Provided, That payments for services rendered by the credit services organization may not exceed twenty-five percent of the total amount owed by the buyer;
(3) A full and detailed description of the services to be performed by the credit services organization for the buyer, including all guarantees and all promises of full or partial refunds, and the estimated length of time, not to exceed one hundred eighty days, for performing the services; and
(4) The address of the credit services organization's principal place of business and the name and address of its agent in the state authorized to receive service or process.
(b) The contract must have attached two easily detachable copies of a notice of cancellation. The notice must be in boldfaced type and in the following form:
"Notice of Cancellation

You may cancel this contract, without any penalty or obligation, within three days after the date the contract is signed.
If you cancel, any payment made by you under this contract will be returned within ten days after the date of receipt by the seller of your cancellation notice.
To cancel this contract, mail or deliver a signed dated copy of this cancellation notice, or other written notice to:
(name of seller) at (address of seller) (place of business) not later than midnight (date)
I hereby cancel this transaction.
(date)

(purchaser's signature)"

(c) The credit services organization shall give to the buyer a copy of the completed contract and all other documents the credit services organization requires the buyer to sign at the time they are signed.
(d) The breach by a credit services organization of a contract under this article, or of any obligation arising from this article, is an unfair or deceptive act or practice.


NOTE: The purpose of this bill is to limit fees to not more than twenty-five percent of total debt owed by buyer who contracts with a credit service organization to improve credit record or obtain extensions of credit.

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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