H. B. 2219



(By Delegates Hendricks, H. White, Harrison,
Carper and Williams)

[Introduced February 22, 1993; referred to the
Committee on the Judiciary.]


A BILL to amend and reenact section one hundred thirteen, article three, chapter forty-six-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to allowing merchants to charge and collect a late payment penalty fee for merchandise which is financed.

 Be it enacted by the Legislature of West Virginia:
That section one hundred thirteen, article three, 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:
§46A-3-113. Delinquency charges on nonprecomputed consumer credit sales or consumer loans repayable in installments.

(1) As an alternative In addition to the continuation of the sales finance charge or loan finance charge on a delinquent installment of with respect to a nonprecomputed consumer credit sale or consumer loan, refinancing or consolidation, repayable in installments, the parties may contract for a delinquency chargeon any installment not paid in full within ten days after its scheduled due date in an amount, not exceeding ten dollars, which is five percent of the unpaid amount of the installment, but in any event not less than one dollar. less than one dollar or five percent of the unpaid balance not to exceed ten dollars if five percent of the unpaid balance is greater than one dollar.
(2) A delinquency charge under subsection (1) may be collected only once on an installment however long it remains in default. A delinquency charge may be collected at the time it accrues or at any time thereafter.
(3) No delinquency charge may be collected on an installment which is paid in full within ten days after its scheduled due date, even though an earlier maturing installment or a delinquency or deferral charge on an earlier installment may not have been paid in full. For purposes of this subsection, payments shall be applied first to current installments, then to delinquent installments, and then to delinquency and other charges.



NOTE: The purpose of this bill is to allow merchants and lenders to charge and collect late payment penalty fees in certain installment sale and installment loan transactions.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.