HB1309 • 2026

Consumer finance companies; additional charges.

An Act to amend and reenact § 6.2-1523 of the Code of Virginia, relating to consumer finance companies; additional charges.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Ballard
Last action: 2026-04-08
Official status: Acts of Assembly Chapter
Effective date: Not listed

Plain English Breakdown

The official source material does not provide details about other specific charges beyond GAP waivers and insurance.

Consumer Finance Companies Can Charge Certain Fees

This law allows consumer finance companies to charge fees for guaranteed asset protection waivers and insurance, as well as other specific charges.

What This Bill Does

Allows consumer finance companies to charge fees for guaranteed asset protection waivers that protect borrowers.
Permits consumer finance companies to collect fees for guaranteed asset protection insurance that benefits the borrower.

Who It Names or Affects

Consumer finance companies
People who take out loans from these companies

Terms To Know

Guaranteed Asset Protection (GAP) Waivers: A type of protection that covers the difference between what a borrower owes on their loan and what an insurance company pays if there is damage to or loss of the asset.
Consumer Finance Companies: Companies that offer loans and other financial services directly to consumers, often for smaller amounts than traditional banks might lend.

Limits and Unknowns

The law does not specify how much these additional charges can be.
It is unclear if there are any limits on the number of times these fees can be charged.

Bill History

2026-04-08 Governor
Approved by Governor-Chapter 464 (effective 7/1/2026)
2026-04-08 Governor
Acts of Assembly Chapter text (CHAP0464)
2026-04-06 House
Fiscal Impact Statement from State Corporation Commission (HB1309)
2026-03-14 House
Enrolled Bill communicated to Governor on March 14, 2026
2026-03-14 Governor
Governor's Action Deadline 11:59 p.m., April 13, 2026
2026-03-12 House
Signed by Speaker
2026-03-12 Senate
Signed by President
2026-03-12 House
Enrolled
2026-03-12 House
Bill text as passed House and Senate (HB1309ER)
2026-03-05 Senate
Read third time
2026-03-05 Senate
Passed Senate (39-Y 0-N 0-A)
2026-03-04 Senate
Rules suspended
2026-03-04 Senate
Rules suspended
2026-03-04 Senate
Rules suspended
2026-03-04 Senate
Passed by for the day
2026-03-04 Senate
Constitutional reading dispensed Block Vote (on 2nd reading) (39-Y 0-N 0-A)
2026-03-04 Senate
Passed by for the day Block Vote (Voice Vote)
2026-03-02 Commerce and Labor
Reported from Commerce and Labor (12-Y 1-N)
2026-02-18 Senate
Constitutional reading dispensed (on 1st reading)
2026-02-18 Commerce and Labor
Referred to Committee on Commerce and Labor
2026-02-17 House
Read third time and passed House Block Vote (97-Y 0-N 0-A)
2026-02-16 House
Read second time and engrossed
2026-02-15 House
Read first time
2026-02-12 Labor and Commerce
Reported from Labor and Commerce (20-Y 0-N)
2026-02-10 Subcommittee #1
Subcommittee recommends reporting (8-Y 0-N)
2026-01-27 Subcommittee #1
Assigned HCL sub: Subcommittee #1
2026-01-25 House
Fiscal Impact Statement from State Corporation Commission (HB1309)
2026-01-16 House
Presented and ordered printed 26105258D
2026-01-16 Labor and Commerce
Referred to Committee on Labor and Commerce

Official Summary Text

Consumer finance companies; additional charges.
Provides that, for the purposes of the prohibition on additional charges by consumer finance companies, exceptions to such prohibition include (i) charges for guaranteed asset protection waivers for the protection and benefit of the borrower in connection with any loan and (ii) charges for guaranteed asset protection insurance for the protection and benefit of the borrower in connection with any loan.

Current Bill Text

Read the full stored bill text

An Act to amend and reenact §
6.2-1523
of the Code of Virginia, relating to consumer finance companies; additional charges.
Be it enacted by the General Assembly of Virginia:
1. That §
6.2-1523
of the Code of Virginia is amended and reenacted as follows:
§
6.2-1523
. Additional charges prohibited; exceptions.
In addition to the interest, late payment fees, and loan processing fee permitted under §
6.2-1520
, no further or other amount whatsoever for any examination service, brokerage, commission, fine, notarial fee, or other thing or otherwise shall be directly or indirectly charged, contracted for, collected, or received, except:
1. Insurance premiums actually paid out by the licensee to any insurance company or agent duly authorized to do business in the Commonwealth or another state for insurance for the protection and benefit of the borrower written in connection with any loan;
2.
Charges for guaranteed asset protection waivers, as authorized under Chapter 64 (§
38.2-6400
et seq.) of Title 38.2, for the protection and benefit of the borrower in connection with any loan;
3. Charges for guaranteed asset protection insurance for the protection and benefit of the borrower in connection with any loan;
4.
The actual cost of recordation fees or, on loans over $100, the amount of the lawful premiums, no greater than such fees, actually paid for insurance against the risk of not recording any instrument securing the loan; and
3.
5.
A handling fee not to exceed $25 for each check returned to the licensee because the drawer had no account or insufficient funds in the payor bank.