Open-end credit plans; civil penalty.

Open-end credit plans; civil penalty. Requiresthat any person engaged in the business of extending credit underan open-end credit plan under which interest is charged at an annualrate that exceeds 36 percent obtain a license to do so from the StateCorporation Commission. The measure prohibits a person licensed asa motor vehicle title lender from extending credit under an open-endcredit plan and prohibits a third party from making open-end creditloans in the office of a licensed motor vehicle title lender. Themeasure prohibits a person that extends credit under an open-endcredit plan under which interest is charged at an annual rate thatexceeds 36 percent from (i) obtaining or accepting from a borroweran authorization to electronically debit the borrower's deposit account;(ii) failing to comply with certain restrictions and prohibitionsapplicable to debt collectors contained in the federal Fair DebtCollection Practices Act; (iii) filing a legal proceeding againsta borrower until 60 days after the date of default on an open-endcredit plan, during which period the person and the borrower mayvoluntarily enter into a repayment arrangement; or (iv) causing a person to be obligated to the licensee for a principal amount thatexceeds $500. The measure also makes it a prohibited practice underthe Virginia Consumer Protection Act to violate the requirementsapplicable to extending credit under an open-end credit plan.