On March 26, West Virginia Gov. Jim Justice approved House Bill 3143 which amends the state’s Consumer Credit and Protection Act.
First, current law provides that a Regulated Consumer Lender License is required for:
- Making regulated consumer loans; or
- Taking assignments of or undertaking direct collection of payments from or enforcement of rights against consumers arising from regulated consumer loans (W. Va. Code § 46A-4-101).
The amendment excludes from licensing under this section collection agencies that are licensed pursuant to the West Virginia Collection Agency Act.
Second, the bill increases the dollar thresholds for certain loans to which maximum finance charges apply:
- 31% for loans unsecured by real property in the amount of $3,500 or less (increased from $2,000 or less)
- 27% for loans secured by real property in an amount greater than $3,500 to $15,000 (increased from greater than $2,000)
- 18% for loans greater than $15,000 (increased from greater than $10,000)
The effective date of the amendments is June 7.