Senate Bill No. 189

(By Senators Helmick, Anderson, Sharpe, Ross, Minard, Minear

and Edgell)

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[Introduced January 22, 1999;

referred to the Committee on Banking and Insurance.]

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A BILL to amend and reenact section one hundred ten-a, article four, chapter forty-six-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to prohibited conduct of regulated consumer lenders.

Be it enacted by the Legislature of West Virginia:
That section one hundred ten-a, article four, 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:
ARTICLE 4. REGULATED CONSUMER LENDERS.
§46A-4-110a. Prohibited conduct.
(1) A regulated consumer lender shall not:
(a) Accept or receive deposits or sell or offer for sale its secured or unsecured evidences or certificates of indebtedness; or
(b) Pay any fees, bonuses, commissions, rewards or other consideration to any person, firm or corporation for the privilege of using any plan of operation, scheme or device for the organization or carrying on of business under this article, or the use of any name, trademark or copyright to be so used: Provided, That nothing herein prevents a regulated consumer lender from agreeing in connection with a loan to pay a broker fee, finders fee or dealer participation fee, or to split the origination fee or points paid: Provided, however, That the fee or fee split is disclosed to the borrower and where proper is included in the finance charge; or
(c) Fail to disclose the amount of a payoff of an existing loan within two business days of receiving a request for such information from either the borrower or an agent acting on behalf of the borrower.
(2) Unless preempted by federal law, no consumer loan by a regulated consumer lender may contain any scheduled balloon payment as set forth in this chapter. Nor may any regulated consumer lender loan contain terms of repayment which result in negative amortization: Provided, That nothing herein prevents unequal payment schedules resulting from a variable rate loan or a revolving line of credit.

(3) A regulated consumer lender may not make revolving loans for the retail purchase of consumer goods and services by use of a lender credit card.


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(NOTE: The purpose of this bill is to add a refusal or failure to provide timely disclosure of the amount of a payoff to the list of prohibited conduct by regulated consumer lenders.

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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SB189 S B&I AM #1 cfb
BANKING AND NG AND INSURANCE COMMITTEE AMENDMENT


The Committee on Banking and Insurance moved to amend the bill oOn page two, section one hundred ten-a, line sixteen, by striking out the word "two" and inserting in lieu thereof the word "three".
Adopted
Rejected