§ 6.1-272.1. Rate of interest; late charges; processing fees
A. For loans up to $2,500, a lender licensed under this chapter may charge and receive interest at a single annual rate not to exceed 36 percent. For loans of more than $2,500, such lender may charge and receive interest only at such single annual rate as shall be stated in the written loan contract signed by the borrower. The annual rate of interest shall be charged only upon principal balances outstanding from time to time. Interest shall not be charged on an add-on basis and shall not be compounded or paid, deducted or received in advance. For the purpose of calculating interest hereunder, a year may be any period of time consisting of 360 or 365 days.
B. Any lender licensed under this chapter may impose a late charge for failure to make timely payment of any installment due on a debt, provided that such late charge does not exceed five percent of the amount of such installment payment and that the charge is specified in the contract between such lender and the borrower. For purposes of this section, "timely payment" means a payment made by the date fixed for payment or within a period of seven calendar days after such fixed date.
C. Any lender licensed under this chapter may charge and receive a processing fee, charged on the principal amount of the loan, for processing the loan contract. The processing fee shall be stated in the written loan contract signed by the borrower. Such processing fee shall be deemed to constitute interest charged on the principal amount of the loan for purposes of determining whether the interest charged on a loan up to $2,500 exceeds the thirty-six percent annual rate limitation imposed by subsection A of this section.
(1995, c. 2; 2001, c. 308.)
Sections: Previous 6.1-267.1 6.1-268 6.1-269 6.1-269.1 6.1-270 6.1-271 6.1-272 6.1-272.1 6.1-273 6.1-274 6.1-275 6.1-276 6.1-277 6.1-278 6.1-279 NextLast modified: April 2, 2009