§ 6.2-1810. (Effective October 1, 2010) Payday lending database.
A. The Commission shall certify and contract with one or more third partiesto develop, implement, and maintain a real-time, Internet-accessible databasethat contains such payday loan information as the Commission may require fromtime to time by administrative rule or policy statement. The database shallbe operational by January 1, 2009.
B. The following provisions shall apply to the database:
1. Before making a payday loan, a licensee shall query the database through aCommission-certified database provider and shall retain evidence of the queryfor the Commission's supervisory review. The database shall allow a licenseeto make a payday loan only if making the loan is permissible under theprovisions of this chapter. During any period that the database isunavailable due to technical problems beyond the licensee's control, alicensee may rely on the payday loan applicant's written representations,rather than the database's information, to verify that making the loanapplied for is permissible under the provisions of this chapter. Because alicensee may rely on the accuracy of the applicant's representations and thedatabase's information, a licensee is not subject to any administrativepenalty or civil liability if that information is later determined to beinaccurate.
2. The database provider shall maintain the database, take all actions itdeems necessary to protect the confidentiality and security of theinformation contained in the database, be responsible for the confidentialityand security of such information, and own the information contained in thedatabase. The Commission shall have access to and utilize the database as anenforcement tool to ensure licensees' compliance with the provisions of thischapter.
3. Upon a licensee's query, the database shall advise the licensee whetherthe applicant is eligible for a new payday loan and, if the applicant isineligible, the reason for such ineligibility. If the database advises thelicensee that the applicant is ineligible for a payday loan, then theapplicant shall direct any inquiry regarding the specific reason for suchineligibility to the database provider rather than to the licensee. Theinformation contained in the payday loan database is confidential and exemptfrom the Freedom of Information Act (§ 2.2-3700 et seq.).
4. If a licensee and borrower consummate a payday loan, then the licenseeshall pay a fee to defray the costs of submitting the database inquiry. Theamount of the database inquiry fee shall be calculated in accordance with aschedule set by the Commission. The schedule shall bear a reasonablerelationship to actual cost of the operation of the database. If a licenseesubmits a database inquiry but does not consummate a payday loan with theapplicant, then the licensee shall not pay the database inquiry fee. Eachlicensee shall remit all database inquiry fees directly to the databaseprovider on a weekly basis.
5. If a borrower enters into a payday loan or pays or otherwise satisfies apayday loan in full, or if a borrower enters into an extended payment plan asprovided in subdivision 26 of § 6.2-1816 or an extended term loan as providedin subdivision 27 of § 6.2-1816, then the licensee making the loan shallreport such event or other information to the database not later than theclose of business on the date of such event.
§ 6.2-1810. (Effective October 1, 2010) Payday lending database.
A. The Commission shall certify and contract with one or more third partiesto develop, implement, and maintain a real-time, Internet-accessible databasethat contains such payday loan information as the Commission may require fromtime to time by administrative rule or policy statement. The database shallbe operational by January 1, 2009.
B. The following provisions shall apply to the database:
1. Before making a payday loan, a licensee shall query the database through aCommission-certified database provider and shall retain evidence of the queryfor the Commission's supervisory review. The database shall allow a licenseeto make a payday loan only if making the loan is permissible under theprovisions of this chapter. During any period that the database isunavailable due to technical problems beyond the licensee's control, alicensee may rely on the payday loan applicant's written representations,rather than the database's information, to verify that making the loanapplied for is permissible under the provisions of this chapter. Because alicensee may rely on the accuracy of the applicant's representations and thedatabase's information, a licensee is not subject to any administrativepenalty or civil liability if that information is later determined to beinaccurate.
2. The database provider shall maintain the database, take all actions itdeems necessary to protect the confidentiality and security of theinformation contained in the database, be responsible for the confidentialityand security of such information, and own the information contained in thedatabase. The Commission shall have access to and utilize the database as anenforcement tool to ensure licensees' compliance with the provisions of thischapter.
3. Upon a licensee's query, the database shall advise the licensee whetherthe applicant is eligible for a new payday loan and, if the applicant isineligible, the reason for such ineligibility. If the database advises thelicensee that the applicant is ineligible for a payday loan, then theapplicant shall direct any inquiry regarding the specific reason for suchineligibility to the database provider rather than to the licensee. Theinformation contained in the payday loan database is confidential and exemptfrom the Freedom of Information Act (§ 2.2-3700 et seq.).
4. If a licensee and borrower consummate a payday loan, then the licenseeshall pay a fee to defray the costs of submitting the database inquiry. Theamount of the database inquiry fee shall be calculated in accordance with aschedule set by the Commission. The schedule shall bear a reasonablerelationship to actual cost of the operation of the database. If a licenseesubmits a database inquiry but does not consummate a payday loan with theapplicant, then the licensee shall not pay the database inquiry fee. Eachlicensee shall remit all database inquiry fees directly to the databaseprovider on a weekly basis.
5. If a borrower enters into a payday loan or pays or otherwise satisfies apayday loan in full, or if a borrower enters into an extended payment plan asprovided in subdivision 26 of § 6.2-1816 or an extended term loan as providedin subdivision 27 of § 6.2-1816, then the licensee making the loan shallreport such event or other information to the database not later than theclose of business on the date of such event.
§ 6.2-1810. (Effective October 1, 2010) Payday lending database.
A. The Commission shall certify and contract with one or more third partiesto develop, implement, and maintain a real-time, Internet-accessible databasethat contains such payday loan information as the Commission may require fromtime to time by administrative rule or policy statement. The database shallbe operational by January 1, 2009.
B. The following provisions shall apply to the database:
1. Before making a payday loan, a licensee shall query the database through aCommission-certified database provider and shall retain evidence of the queryfor the Commission's supervisory review. The database shall allow a licenseeto make a payday loan only if making the loan is permissible under theprovisions of this chapter. During any period that the database isunavailable due to technical problems beyond the licensee's control, alicensee may rely on the payday loan applicant's written representations,rather than the database's information, to verify that making the loanapplied for is permissible under the provisions of this chapter. Because alicensee may rely on the accuracy of the applicant's representations and thedatabase's information, a licensee is not subject to any administrativepenalty or civil liability if that information is later determined to beinaccurate.
2. The database provider shall maintain the database, take all actions itdeems necessary to protect the confidentiality and security of theinformation contained in the database, be responsible for the confidentialityand security of such information, and own the information contained in thedatabase. The Commission shall have access to and utilize the database as anenforcement tool to ensure licensees' compliance with the provisions of thischapter.
3. Upon a licensee's query, the database shall advise the licensee whetherthe applicant is eligible for a new payday loan and, if the applicant isineligible, the reason for such ineligibility. If the database advises thelicensee that the applicant is ineligible for a payday loan, then theapplicant shall direct any inquiry regarding the specific reason for suchineligibility to the database provider rather than to the licensee. Theinformation contained in the payday loan database is confidential and exemptfrom the Freedom of Information Act (§ 2.2-3700 et seq.).
4. If a licensee and borrower consummate a payday loan, then the licenseeshall pay a fee to defray the costs of submitting the database inquiry. Theamount of the database inquiry fee shall be calculated in accordance with aschedule set by the Commission. The schedule shall bear a reasonablerelationship to actual cost of the operation of the database. If a licenseesubmits a database inquiry but does not consummate a payday loan with theapplicant, then the licensee shall not pay the database inquiry fee. Eachlicensee shall remit all database inquiry fees directly to the databaseprovider on a weekly basis.
5. If a borrower enters into a payday loan or pays or otherwise satisfies apayday loan in full, or if a borrower enters into an extended payment plan asprovided in subdivision 26 of § 6.2-1816 or an extended term loan as providedin subdivision 27 of § 6.2-1816, then the licensee making the loan shallreport such event or other information to the database not later than theclose of business on the date of such event.
