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HB1505 • 2026

Financial services; right of buyer to refinance certain payments, exemption.

<p class=ldtitle>A BILL to amend and reenact § 6.2-437 of the Code of Virginia, relating to right of buyer of consumer goods to refinance certain payments; exemption for the purchase of motor vehicles.</p>

Enacted

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

Sponsor
Sullivan
Last action
2026-02-18
Official status
Failed
Effective date
Not listed

Plain English Breakdown

The bill text does not explicitly state the requirement of providing a clear payment schedule, but it implies this through its conditions.

Financial Services; Right to Refinance for Motor Vehicle Purchases

This bill changes a law about when buyers can refinance their payments on consumer goods, but it says that this right does not apply to motor vehicle purchases if the payment plan is clearly shown and no single installment payment exceeds 50 percent of regular payments.

What This Bill Does

  • Changes the rules for refinancing payments on consumer goods.
  • Exempts motor vehicles from these refinancing rules under certain conditions.

Who It Names or Affects

  • Buyers of consumer goods who want to refinance their payments.
  • People buying motor vehicles on credit.

Terms To Know

Consumer Goods
Items bought by individuals for personal use, not for business purposes.
Installment Payments
Regular payments made over time to pay off a debt or purchase.

Limits and Unknowns

  • The bill does not specify what happens if the payment schedule is not disclosed properly.
  • It only applies to motor vehicles and not other types of consumer goods.
  • There are no details on how this change affects existing laws for refinancing payments.

Bill History

  1. 2026-02-18 House

    Left in Labor and Commerce

  2. 2026-02-10 Subcommittee #1

    Subcommittee recommends striking from the docket (9-Y 0-N)

  3. 2026-02-08 House

    Fiscal Impact Statement from State Corporation Commission (HB1505)

  4. 2026-02-03 Subcommittee #1

    Assigned HCL sub: Subcommittee #1

  5. 2026-01-23 House

    Presented and ordered printed 26103567D

  6. 2026-01-23 Labor and Commerce

    Referred to Committee on Labor and Commerce

Official Summary Text

Financial services; right of buyer to refinance certain payments; exemption.
Provides that provisions authorizing a buyer of consumer goods to refinance an installment payment when such payment is greater than 10 percent more than the regular installment payments do not apply to the purchase of a motor vehicle, provided that the financing agreement includes a payment schedule that is disclosed to the buyer and no installment payment is more than 50 percent greater than the regular installment payments.

Current Bill Text

Read the full stored bill text 
A BILL to amend and reenact §
6.2-437
of the Code of Virginia, relating to right of buyer of consumer goods to refinance certain payments; exemption for the purchase of motor vehicles.

Be it enacted by the General Assembly of Virginia:

1. That §
6.2-437
of the Code of Virginia is amended and reenacted as follows:

§
6.2-437
. Right of buyer of consumer goods to refinance certain payments; agreements as to fluctuation in schedule of payments.

A. In any sales transaction, except one pursuant to an open-end account, involving exclusively consumer goods as defined in subdivision (a) (23) of § 8.9A-102 in which credit is extended and a security interest in consumer goods is taken, any installment payment, other than a down payment made prior to or contemporaneously with the execution of an agreement evidencing the transaction, that is more than 10 percent greater than the regular or recurring installment payments, shall be subject to the buyer's right to refinance such a payment on the basis of an extended period of time. Such additional payments shall be in amounts that shall allow the unpaid balance to be paid in as few periodic payments, not more than 10 percent greater than the regularly scheduled installment payments, as are required to pay such balance. Such additional payments shall be considered and treated as part of the original transaction.

B. The parties may agree in a separate writing that one or more payments or the intervals between one or more payments shall be reduced or expanded in accordance with the desires or needs of the buyer, if such fluctuations in the schedule of payments are expressly arranged to coincide with the anticipated fluctuations in the buyer's capability to make such payments.

C. No seller who has refused to refinance in compliance with the provisions of this section shall be entitled (i) to the return or repossession of the goods involved in the transaction or (ii) to a judgment for the unpaid balance involved in the transaction at the time of his failure to do so.

D. The provisions of this section shall not apply to a sal
es transaction for the purchase of a motor vehicle

in which credit is extended and a security interest in the motor vehicle is taken
,

provi
ded that
the financing agreement includes a payment sche
dule
that is disclosed to the buyer and
no installment payment
, other than a down payment made prior to or contemporaneously with the execution of the financing agreement,
is more
than 50 percent greater
than
the regular or recurring installment payments
.