§ 6.1-330.78. (Repealed effective October 1, 2010) Open-end sales and loanplans.
A. Notwithstanding any provision of this chapter other than § 6.1-330.71, andexcept as provided in subsection E, any seller or lender engaged in theextension of credit under an open-end credit or similar plan under which afinance charge is imposed upon the obligor, if payment in full of the unpaidbalance is not received at the place designated by the creditor prior to thenext billing date (which shall be at least twenty-five days later than theprior billing date), may impose finance charges and other charges and fees atsuch rates and in such amounts and manner as may be agreed upon by the selleror lender and the obligor.
B. Notwithstanding the provisions of § 6.1-330.71 and subject to theprovisions of § 8.9A-204.1, any loan made under this section may be securedin whole or in part by a subordinate mortgage or deed of trust on residentialreal estate improved by the construction thereon of housing consisting of oneto four family dwelling units.
C. Any application form or preapproved written solicitation for an open-endcredit card account to be used for personal, family, or household purposeswhich is mailed on or after January 1, 1988, to a consumer residing in thisCommonwealth by or on behalf of a creditor, whether or not the creditor islocated in this Commonwealth, other than an application form or solicitationincluded in a magazine, newspaper, or other publication distributed bysomeone other than the creditor, shall contain or be accompanied by any ofthe following disclosures:
1. A disclosure of each of the following if applicable:
a. Any periodic rate or rates that may be applied to the account, expressedas an annual percentage rate or rates. If the account is subject to avariable rate, the creditor may instead disclose the rate as of a specificdate and indicate that the rate may vary, or identify the index and anyamount or percentage added to, or subtracted from, that index and used todetermine the rate.
b. Any membership or participation fee that may be imposed for availabilityof a credit card account.
c. Any transaction fee that may be imposed on purchases, or any other chargeor fee that may be imposed, expressed as an amount or as a percentage of thetransaction, as applicable.
d. Any grace period or free period during which the consumer may repay thefull balance reflected on a billing statement which is attributable topurchases of goods or services from the creditor or from merchantsparticipating in the credit card plan, without the imposition of additionalfinance charges. The creditor shall either disclose the number of days ofthat period, calculated from the closing date of the prior billing cycle tothe date designated in the billing statement sent to the consumer as the dateby which that payment must be received to avoid additional finance charges,or describe the manner in which the period is calculated. If the creditordoes not provide such a period for purchases, the disclosure shall soindicate;
2. A disclosure that satisfies the initial disclosure requirements ofRegulation Z; or
3. If a creditor is now or hereafter required under federal law to makedisclosures of the terms applicable to a credit card account in connectionwith application forms or solicitations, the creditor shall be deemed to havecomplied with the requirements of this subsection if the creditor complieswith the federal disclosure requirements. The disclosure of any transactionfee that may be imposed on purchases, or any other charge or fee, shall bewritten on any such application form or preapproved written solicitation.
D. An open-end credit or similar plan between a seller or lender and anobligor shall be governed solely by federal law, and by the laws of theCommonwealth of Virginia unless otherwise expressly agreed in writing by theparties.
E. Except as provided in subsection F, a licensee, as defined in § 6.1-444,shall not engage in the extension of credit under an open-end credit orsimilar plan described in this section, and a third party shall not engage inthe extension of credit under an open-end credit or similar plan described inthis section at any office, suite, room, or place of business where alicensee conducts the business of making payday loans. In addition to anyother remedies or penalties provided for a violation of this section, anysuch extension of credit made by a licensee or third party in violation ofthis subsection shall be unenforceable against the borrower.
F. No prohibition in subsection E shall apply to an extension of credit underan open-end credit or similar plan that is secured by a security interest ina motor vehicle, as such term is defined in § 46.2-100.
G. If a licensee, as defined in § 6.1-444, surrenders its license underChapter 18 (§ 6.1-444 et seq.) of this title or has its license revoked, andif following such surrender or revocation of its license the former licenseeengages in the extension of credit under an open-end credit or similar planas described in this section, then the Commission shall not issue to suchformer licensee, or to any affiliate of the former licensee, a license underChapter 18 of this title for a period of 10 years from the date such licenseis surrendered or revoked. As used in this subsection, "affiliate of theformer licensee" means a business entity that owns or controls, is owned orcontrolled by, or is under common ownership or control with, the formerlicensee.
(1987, cc. 622, 639, 714; 1992, Sp. Sess., c. 4; 1997, c. 112; 2009, cc. 784,860.)
§ 6.1-330.78. (Repealed effective October 1, 2010) Open-end sales and loanplans.
A. Notwithstanding any provision of this chapter other than § 6.1-330.71, andexcept as provided in subsection E, any seller or lender engaged in theextension of credit under an open-end credit or similar plan under which afinance charge is imposed upon the obligor, if payment in full of the unpaidbalance is not received at the place designated by the creditor prior to thenext billing date (which shall be at least twenty-five days later than theprior billing date), may impose finance charges and other charges and fees atsuch rates and in such amounts and manner as may be agreed upon by the selleror lender and the obligor.
B. Notwithstanding the provisions of § 6.1-330.71 and subject to theprovisions of § 8.9A-204.1, any loan made under this section may be securedin whole or in part by a subordinate mortgage or deed of trust on residentialreal estate improved by the construction thereon of housing consisting of oneto four family dwelling units.
C. Any application form or preapproved written solicitation for an open-endcredit card account to be used for personal, family, or household purposeswhich is mailed on or after January 1, 1988, to a consumer residing in thisCommonwealth by or on behalf of a creditor, whether or not the creditor islocated in this Commonwealth, other than an application form or solicitationincluded in a magazine, newspaper, or other publication distributed bysomeone other than the creditor, shall contain or be accompanied by any ofthe following disclosures:
1. A disclosure of each of the following if applicable:
a. Any periodic rate or rates that may be applied to the account, expressedas an annual percentage rate or rates. If the account is subject to avariable rate, the creditor may instead disclose the rate as of a specificdate and indicate that the rate may vary, or identify the index and anyamount or percentage added to, or subtracted from, that index and used todetermine the rate.
b. Any membership or participation fee that may be imposed for availabilityof a credit card account.
c. Any transaction fee that may be imposed on purchases, or any other chargeor fee that may be imposed, expressed as an amount or as a percentage of thetransaction, as applicable.
d. Any grace period or free period during which the consumer may repay thefull balance reflected on a billing statement which is attributable topurchases of goods or services from the creditor or from merchantsparticipating in the credit card plan, without the imposition of additionalfinance charges. The creditor shall either disclose the number of days ofthat period, calculated from the closing date of the prior billing cycle tothe date designated in the billing statement sent to the consumer as the dateby which that payment must be received to avoid additional finance charges,or describe the manner in which the period is calculated. If the creditordoes not provide such a period for purchases, the disclosure shall soindicate;
2. A disclosure that satisfies the initial disclosure requirements ofRegulation Z; or
3. If a creditor is now or hereafter required under federal law to makedisclosures of the terms applicable to a credit card account in connectionwith application forms or solicitations, the creditor shall be deemed to havecomplied with the requirements of this subsection if the creditor complieswith the federal disclosure requirements. The disclosure of any transactionfee that may be imposed on purchases, or any other charge or fee, shall bewritten on any such application form or preapproved written solicitation.
D. An open-end credit or similar plan between a seller or lender and anobligor shall be governed solely by federal law, and by the laws of theCommonwealth of Virginia unless otherwise expressly agreed in writing by theparties.
E. Except as provided in subsection F, a licensee, as defined in § 6.1-444,shall not engage in the extension of credit under an open-end credit orsimilar plan described in this section, and a third party shall not engage inthe extension of credit under an open-end credit or similar plan described inthis section at any office, suite, room, or place of business where alicensee conducts the business of making payday loans. In addition to anyother remedies or penalties provided for a violation of this section, anysuch extension of credit made by a licensee or third party in violation ofthis subsection shall be unenforceable against the borrower.
F. No prohibition in subsection E shall apply to an extension of credit underan open-end credit or similar plan that is secured by a security interest ina motor vehicle, as such term is defined in § 46.2-100.
G. If a licensee, as defined in § 6.1-444, surrenders its license underChapter 18 (§ 6.1-444 et seq.) of this title or has its license revoked, andif following such surrender or revocation of its license the former licenseeengages in the extension of credit under an open-end credit or similar planas described in this section, then the Commission shall not issue to suchformer licensee, or to any affiliate of the former licensee, a license underChapter 18 of this title for a period of 10 years from the date such licenseis surrendered or revoked. As used in this subsection, "affiliate of theformer licensee" means a business entity that owns or controls, is owned orcontrolled by, or is under common ownership or control with, the formerlicensee.
(1987, cc. 622, 639, 714; 1992, Sp. Sess., c. 4; 1997, c. 112; 2009, cc. 784,860.)
§ 6.1-330.78. (Repealed effective October 1, 2010) Open-end sales and loanplans.
A. Notwithstanding any provision of this chapter other than § 6.1-330.71, andexcept as provided in subsection E, any seller or lender engaged in theextension of credit under an open-end credit or similar plan under which afinance charge is imposed upon the obligor, if payment in full of the unpaidbalance is not received at the place designated by the creditor prior to thenext billing date (which shall be at least twenty-five days later than theprior billing date), may impose finance charges and other charges and fees atsuch rates and in such amounts and manner as may be agreed upon by the selleror lender and the obligor.
B. Notwithstanding the provisions of § 6.1-330.71 and subject to theprovisions of § 8.9A-204.1, any loan made under this section may be securedin whole or in part by a subordinate mortgage or deed of trust on residentialreal estate improved by the construction thereon of housing consisting of oneto four family dwelling units.
C. Any application form or preapproved written solicitation for an open-endcredit card account to be used for personal, family, or household purposeswhich is mailed on or after January 1, 1988, to a consumer residing in thisCommonwealth by or on behalf of a creditor, whether or not the creditor islocated in this Commonwealth, other than an application form or solicitationincluded in a magazine, newspaper, or other publication distributed bysomeone other than the creditor, shall contain or be accompanied by any ofthe following disclosures:
1. A disclosure of each of the following if applicable:
a. Any periodic rate or rates that may be applied to the account, expressedas an annual percentage rate or rates. If the account is subject to avariable rate, the creditor may instead disclose the rate as of a specificdate and indicate that the rate may vary, or identify the index and anyamount or percentage added to, or subtracted from, that index and used todetermine the rate.
b. Any membership or participation fee that may be imposed for availabilityof a credit card account.
c. Any transaction fee that may be imposed on purchases, or any other chargeor fee that may be imposed, expressed as an amount or as a percentage of thetransaction, as applicable.
d. Any grace period or free period during which the consumer may repay thefull balance reflected on a billing statement which is attributable topurchases of goods or services from the creditor or from merchantsparticipating in the credit card plan, without the imposition of additionalfinance charges. The creditor shall either disclose the number of days ofthat period, calculated from the closing date of the prior billing cycle tothe date designated in the billing statement sent to the consumer as the dateby which that payment must be received to avoid additional finance charges,or describe the manner in which the period is calculated. If the creditordoes not provide such a period for purchases, the disclosure shall soindicate;
2. A disclosure that satisfies the initial disclosure requirements ofRegulation Z; or
3. If a creditor is now or hereafter required under federal law to makedisclosures of the terms applicable to a credit card account in connectionwith application forms or solicitations, the creditor shall be deemed to havecomplied with the requirements of this subsection if the creditor complieswith the federal disclosure requirements. The disclosure of any transactionfee that may be imposed on purchases, or any other charge or fee, shall bewritten on any such application form or preapproved written solicitation.
D. An open-end credit or similar plan between a seller or lender and anobligor shall be governed solely by federal law, and by the laws of theCommonwealth of Virginia unless otherwise expressly agreed in writing by theparties.
E. Except as provided in subsection F, a licensee, as defined in § 6.1-444,shall not engage in the extension of credit under an open-end credit orsimilar plan described in this section, and a third party shall not engage inthe extension of credit under an open-end credit or similar plan described inthis section at any office, suite, room, or place of business where alicensee conducts the business of making payday loans. In addition to anyother remedies or penalties provided for a violation of this section, anysuch extension of credit made by a licensee or third party in violation ofthis subsection shall be unenforceable against the borrower.
F. No prohibition in subsection E shall apply to an extension of credit underan open-end credit or similar plan that is secured by a security interest ina motor vehicle, as such term is defined in § 46.2-100.
G. If a licensee, as defined in § 6.1-444, surrenders its license underChapter 18 (§ 6.1-444 et seq.) of this title or has its license revoked, andif following such surrender or revocation of its license the former licenseeengages in the extension of credit under an open-end credit or similar planas described in this section, then the Commission shall not issue to suchformer licensee, or to any affiliate of the former licensee, a license underChapter 18 of this title for a period of 10 years from the date such licenseis surrendered or revoked. As used in this subsection, "affiliate of theformer licensee" means a business entity that owns or controls, is owned orcontrolled by, or is under common ownership or control with, the formerlicensee.
(1987, cc. 622, 639, 714; 1992, Sp. Sess., c. 4; 1997, c. 112; 2009, cc. 784,860.)
