H. B. 2948
(By Delegates H. White, R. M. Thompson,
Perry and Hrutkay)
[Introduced February 10, 2003; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact section one hundred fifteen, article
two, chapter forty-six-a of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
expenses of realizing on security interests; allowing recovery
of expenses when a consumer requests discontinuation of
efforts to realize on security interests; and making the
amendments to this section apply retroactively.
Be it enacted by the Legislature of West Virginia:
That section one hundred fifteen, article two, 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 2. CONSUMER CREDIT PROTECTION.
§46A-2-115. Limitation on default charges.
Except for reasonable expenses incurred on a security interest
in tangible, intangible, real or personal property, including, but
not limited to,
costs and fees authorized by statute, incurred in
realizing on a security interest, the agreement with respect to a
consumer credit sale or a consumer loan may not provide for charges
as a result of default by the consumer other than those authorized
by this chapter: Provided, That the agreement may provide for the
recovery of actual expenses paid or owed to third parties or
incurred by the creditor upon discontinuation of efforts to realize
on a security interest, if the discontinuation is at the request of
the consumer. A provision in violation of this section is
unenforceable. The amendments to this section by acts of the
Legislature in the regular session of two thousand three are a
clarification of existing law and shall be retroactively applied to
all agreements in effect on the date of passage of the amendments,
except where controversies arising under those agreements have
resulted in final judgments prior to the date of passage of the
amendments.
NOTE: The purpose of this bill is to give consumers a greater opportunity to successfully obtain discontinuation of foreclosure
sales and other efforts to repossess property. The bill will give
lenders and trustees an incentive to discontinue these actions by
allowing recovery of reasonable expenses already incurred when a
consumer requests that foreclosure or other actions to realize on
secured property discontinued.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.