SB 729
Setting maximum interest rate which licensed regulated consumer lenders may charge on installment loans
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill sets a maximum annual interest rate that licensed regulated consumer lenders in West Virginia can charge on installment loans up to $35,000. The maximum interest rate is tiered based on the loan amount, with lower rates for smaller loans ($3,500 or less) and loans secured by real property. It also removes a cap on nonrevolving loans when calculating finance charges. The bill allows for the possibility of charging origination fees and processing fees, subject to certain limitations.
Key provisions
- Establishes a maximum annual interest rate of 36% on installment loans up to $35,000.
- Sets lower interest rates for unsecured loans of $3,500 or less (31%), and secured loans (27%).
- Allows for a two percent charge on nonrevolving loans over $3,500, with a five percent charge for loans secured by real estate.
- Provides an alternative interest rate of up to 31% plus a two percent processing fee for loans of $3,500 or less.
- Permits the collection of finance charges on loans originated in other states, provided certain conditions are met.
- Specifies how billing cycles and days are calculated for determining monthly finance charges.
- Clarifies that financing fees are permissible and do not constitute interest on interest.
Who is affected
- Regulated consumer lenders in West Virginia
- Borrowers taking out installment loans in West Virginia
- Financial institutions
- Consumers seeking loans
Notable changes
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