Code of Virginia - Title 6.1 Banking And Finance - Section 6.1-363.3 License requirement; exceptions

§ 6.1-363.3. License requirement; exceptions

A. No person shall engage in the business of providing or offering to provide a DMP to any consumer residing in the Commonwealth, whether or not the person has a location in the Commonwealth, unless such person obtains from the Commission a license issued pursuant to this chapter. However, the provisions of this chapter shall not apply to a person licensed to practice law in the Commonwealth.

B. This chapter shall be construed by the Commission to promote sound personal financial advice and management, and protect against financial loss residents of the Commonwealth who place money or control of their funds or credit into the custody of an Agency for transmission to such residents' creditors, regardless of whether the Agency has any office, facility, agent, or other physical presence in the Commonwealth.

C. An Agency operating under a license previously issued by the Commission under former Chapter 10.1 (§ 6.1-363.1) of this title may continue to operate in the Commonwealth pursuant to such license; provided, however, that such license shall automatically terminate on the earliest of the following: (i) the date the Commission issues a license to the Agency under this chapter; (ii) the date the Commission denies an application for a license under this chapter, unless such Agency reapplies within 30 days thereafter, provided that only one such reapplication shall be permitted; or (iii) June 30, 2005. An Agency operating under a license previously issued by the Commission under former Chapter 10.1 of this title shall reapply to the Commission for a license under this chapter no later than October 1, 2004.

D. A person licensed under this chapter is not required to also be licensed as a money transmitter under Chapter 12 (§ 6.1-370 et seq.) of this title, provided such person's money transmission activities are limited to providing debt pooling and distribution services in accordance with this chapter.

E. Any person who violates this section is guilty of a Class 1 misdemeanor. Each violation of this section shall constitute a separate offense.

(2004, c. 790.)

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Last modified: April 16, 2009