Code of Virginia - Title 38.2 Insurance - Section 38.2-4706 Default charge; bad check charge

§ 38.2-4706. Default charge; bad check charge

A. If any installment under a premium finance agreement is not paid in full within seven days after it is due, Sundays and holidays included, the insurance premium finance company may charge and collect a default charge not to exceed five percent of the installment. The default charge shall be collected only once on any installment.

B. An insurance premium finance company may charge and collect a fee, not in excess of twenty dollars, for each check returned to the insurance premium finance company because the drawer had no account or insufficient funds in the payor bank.

(1981, c. 107, § 38.1-740.2; 1986, c. 562; 1994, c. 123.)

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Last modified: April 3, 2009