§ 6.2-2216. (Effective October 1, 2010) Interest and other charges; term;monthly payments.
A. A licensee may charge and collect interest on a motor vehicle title loanat rates not to exceed the following:
1. Twenty-two percent per month on the portion of the principal that does notexceed $700;
2. Eighteen percent per month on the portion of the principal that exceeds$700 but does not exceed $1,400; and
3. Fifteen percent per month on the portion of the principal that exceeds$1,400.
B. The annual rate of interest shall be charged only upon principal balancesoutstanding from time to time. Interest shall not be charged on an add-onbasis and shall not be compounded or paid, deducted or received in advance.On motor vehicle title loans in excess of $700, a licensee may accrueinterest utilizing a single blended interest rate provided the maximum chargeallowed pursuant to subsection A is not exceeded.
C. Notwithstanding anything set forth in subsection A, other provisions ofthis chapter, or in a motor vehicle title loan agreement, interest shall notaccrue on the principal balance of a motor vehicle title loan from and after:
1. The date that the motor vehicle securing the title loan is repossessed bythe licensee making the loan; or
2. Sixty days after the borrower has failed to make a monthly payment on amotor vehicle title loan as required by the loan agreement unless theborrower has not surrendered the motor vehicle and the borrower is concealingthe motor vehicle.
D. In addition to the loan principal and interest permitted under subsectionA, a licensee shall not directly or indirectly charge, contract for, collect,receive, recover, or require a borrower to pay any further or other fee,charge, or amount whatsoever except for (i) a licensee's actual cost ofperfecting its security interest in a motor vehicle securing the borrower'sobligations under a loan agreement and (ii) reasonable costs of repossessionand sale of the motor vehicle in accordance with § 6.2-2217. A licensee shallnot be entitled to collect or recover from a borrower any sum otherwisepermitted pursuant to § 6.2-302, 8.01-27.2, or 8.01-382. In no event shallthe borrower be liable for fees incurred in connection with the storage of amotor vehicle securing a title loan following the motor vehicle'srepossession by the licensee or its agent, or the voluntary surrender ofpossession of the motor vehicle by the borrower to the licensee.
E. Every title loan shall be a term loan providing for repayment of theprincipal and interest in substantially equal monthly installments ofprincipal and interest; however, nothing in this chapter shall prohibit aloan agreement from providing for an odd first payment period and an oddfirst payment greater than other monthly payments because of such odd firstpayment period.
F. A title loan agreement may not be extended, renewed, or refinanced.
G. A licensee may impose a late charge for failure to make timely payment ofany amount due under the loan agreement provided that such late charge doesnot exceed the amount permitted by § 6.2-400.
H. Payments shall be credited by the licensee on the date received.
§ 6.2-2216. (Effective October 1, 2010) Interest and other charges; term;monthly payments.
A. A licensee may charge and collect interest on a motor vehicle title loanat rates not to exceed the following:
1. Twenty-two percent per month on the portion of the principal that does notexceed $700;
2. Eighteen percent per month on the portion of the principal that exceeds$700 but does not exceed $1,400; and
3. Fifteen percent per month on the portion of the principal that exceeds$1,400.
B. The annual rate of interest shall be charged only upon principal balancesoutstanding from time to time. Interest shall not be charged on an add-onbasis and shall not be compounded or paid, deducted or received in advance.On motor vehicle title loans in excess of $700, a licensee may accrueinterest utilizing a single blended interest rate provided the maximum chargeallowed pursuant to subsection A is not exceeded.
C. Notwithstanding anything set forth in subsection A, other provisions ofthis chapter, or in a motor vehicle title loan agreement, interest shall notaccrue on the principal balance of a motor vehicle title loan from and after:
1. The date that the motor vehicle securing the title loan is repossessed bythe licensee making the loan; or
2. Sixty days after the borrower has failed to make a monthly payment on amotor vehicle title loan as required by the loan agreement unless theborrower has not surrendered the motor vehicle and the borrower is concealingthe motor vehicle.
D. In addition to the loan principal and interest permitted under subsectionA, a licensee shall not directly or indirectly charge, contract for, collect,receive, recover, or require a borrower to pay any further or other fee,charge, or amount whatsoever except for (i) a licensee's actual cost ofperfecting its security interest in a motor vehicle securing the borrower'sobligations under a loan agreement and (ii) reasonable costs of repossessionand sale of the motor vehicle in accordance with § 6.2-2217. A licensee shallnot be entitled to collect or recover from a borrower any sum otherwisepermitted pursuant to § 6.2-302, 8.01-27.2, or 8.01-382. In no event shallthe borrower be liable for fees incurred in connection with the storage of amotor vehicle securing a title loan following the motor vehicle'srepossession by the licensee or its agent, or the voluntary surrender ofpossession of the motor vehicle by the borrower to the licensee.
E. Every title loan shall be a term loan providing for repayment of theprincipal and interest in substantially equal monthly installments ofprincipal and interest; however, nothing in this chapter shall prohibit aloan agreement from providing for an odd first payment period and an oddfirst payment greater than other monthly payments because of such odd firstpayment period.
F. A title loan agreement may not be extended, renewed, or refinanced.
G. A licensee may impose a late charge for failure to make timely payment ofany amount due under the loan agreement provided that such late charge doesnot exceed the amount permitted by § 6.2-400.
H. Payments shall be credited by the licensee on the date received.
§ 6.2-2216. (Effective October 1, 2010) Interest and other charges; term;monthly payments.
A. A licensee may charge and collect interest on a motor vehicle title loanat rates not to exceed the following:
1. Twenty-two percent per month on the portion of the principal that does notexceed $700;
2. Eighteen percent per month on the portion of the principal that exceeds$700 but does not exceed $1,400; and
3. Fifteen percent per month on the portion of the principal that exceeds$1,400.
B. The annual rate of interest shall be charged only upon principal balancesoutstanding from time to time. Interest shall not be charged on an add-onbasis and shall not be compounded or paid, deducted or received in advance.On motor vehicle title loans in excess of $700, a licensee may accrueinterest utilizing a single blended interest rate provided the maximum chargeallowed pursuant to subsection A is not exceeded.
C. Notwithstanding anything set forth in subsection A, other provisions ofthis chapter, or in a motor vehicle title loan agreement, interest shall notaccrue on the principal balance of a motor vehicle title loan from and after:
1. The date that the motor vehicle securing the title loan is repossessed bythe licensee making the loan; or
2. Sixty days after the borrower has failed to make a monthly payment on amotor vehicle title loan as required by the loan agreement unless theborrower has not surrendered the motor vehicle and the borrower is concealingthe motor vehicle.
D. In addition to the loan principal and interest permitted under subsectionA, a licensee shall not directly or indirectly charge, contract for, collect,receive, recover, or require a borrower to pay any further or other fee,charge, or amount whatsoever except for (i) a licensee's actual cost ofperfecting its security interest in a motor vehicle securing the borrower'sobligations under a loan agreement and (ii) reasonable costs of repossessionand sale of the motor vehicle in accordance with § 6.2-2217. A licensee shallnot be entitled to collect or recover from a borrower any sum otherwisepermitted pursuant to § 6.2-302, 8.01-27.2, or 8.01-382. In no event shallthe borrower be liable for fees incurred in connection with the storage of amotor vehicle securing a title loan following the motor vehicle'srepossession by the licensee or its agent, or the voluntary surrender ofpossession of the motor vehicle by the borrower to the licensee.
E. Every title loan shall be a term loan providing for repayment of theprincipal and interest in substantially equal monthly installments ofprincipal and interest; however, nothing in this chapter shall prohibit aloan agreement from providing for an odd first payment period and an oddfirst payment greater than other monthly payments because of such odd firstpayment period.
F. A title loan agreement may not be extended, renewed, or refinanced.
G. A licensee may impose a late charge for failure to make timely payment ofany amount due under the loan agreement provided that such late charge doesnot exceed the amount permitted by § 6.2-400.
H. Payments shall be credited by the licensee on the date received.
