SB 702
Setting new maximum annual interest rate for regulated consumer lenders on certain loans
Take action
Record your position on this measure.
Sign in to record your position, submit testimony, or contact your legislator.
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 for regulated consumer lenders in West Virginia on loans up to $35,000. It establishes tiered interest rate caps based on the loan amount, with the highest rate of 36% for loans under $3,500 and a maximum of 18% for loans over $15,000. The bill also removes a previous cap on nonrevolving loans when calculating finance charges. It includes provisions regarding origination fees and processing fees on loans.
Key provisions
- Establishes a maximum annual interest rate of 36% on loans up to $35,000.
- Sets tiered interest rate caps based on loan amount: 31% for loans under $3,500 and 27% for loans between $3,500 and $15,000.
- Allows a maximum of 2% origination fee or points on nonrevolving loans over $3,500.
- Permits a maximum of 5% origination fee, points, or investigation fee on loans secured by real estate.
- Specifies calculation methods for loan finance charges, including the actuarial method and consideration of prepayment.
- Allows interest rates up to 31% with a 2% processing fee for loans under $3,500.
- Addresses loan terms and billing cycles for revolving loan accounts.
- Provides an exception for loans assigned from out-of-state lenders, subject to specific conditions.
Who is affected
- Regulated consumer lenders in West Virginia
- Borrowers seeking loans up to $35,000
- Financial institutions
- Consumers in West Virginia
Notable changes
Arguments in favor
Reasons to support this legislation.
No arguments in favor have been submitted.
Submit yoursArguments opposed
Reasons to oppose this legislation.
No arguments opposed have been submitted.
Submit yours