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H. B. 2222
(By Delegates Webster, Manuel, Staton and Pino)
[Introduced
January 14, 2003
; referred to the
Committee on the Judiciary.]
A BILL to amend article two, chapter forty-six-a of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
one hundred forty, relating to the use of checks or account
debits for loans or cash advances made for personal, family or
household purposes.
Be it enacted by the Legislature of West Virginia:
That article two, chapter forty-six-a of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section one
hundred forty, to read as follows:
ARTICLE 2. CONSUMER CREDIT PROTECTION.
§46A-2-140. No use of checks, drafts or debit authorizations as
security.
(a) No person may engage in the business of making, arranging, acting as a middleman for, or brokering cash advances or loans to
persons for any personal, family or household purpose under any
agreement in which checks, share drafts or authorizations to debit
accounts of consumers are used as security or as a direct or
indirect part of a transaction for an advance, loan or extension of
credit, and in which the payment of checks, share drafts or the
debit of accounts is deferred.
(b) Acting in violation of this section is unconscionable
conduct within the meaning of article five of this chapter and is
an unfair and deceptive practice under article six of this chapter.
Any agreement in violation of this section is void and
unenforceable.
NOTE: The purpose of this bill is to prevent the taking of
checks or similar instruments to guarantee loans or cash advances.
This section is new; therefore, strike-throughs and
underscoring have been omitted.