Motor vehicle title loans, payday loans, consumer finance loans, etc.; interest rate.

Motor vehicle title loans, payday loans, consumerfinance loans, and open-end credit plans; interest rate. Capsthe rate of interest that may be charged on motor vehicle title loans,payday loans, and open-end credit plans at an annual rate that is25 percent higher than the federal funds rate in effect on the datethe loan was made. The bill prohibits a lender from charging a membershipfee, participation fee, or transaction fee in connection with anysuch extension of credit. The bill also imposes the same maximuminterest rate on loans made by a licensed consumer finance companyand eliminates the existing provision that permits such licensed companies to charge any agreed-upon amount of interest on consumerfinance loans over $2,500. The measure caps the allowable amountof repossession and sales fees in connection with a motor vehicletitle loan; imposes restrictions on open-end lending; and preventspayday lenders and other lenders from using a credit services businesslicense to extend credit that is for less than $5,000, has a termof less than one year, is provided under an open-end credit plan,or has an interest rate that exceeds 36 percent per year. A violationof the open-end lending provisions is made a prohibited practiceunder the Virginia Consumer Protection Act.