6.2-1520 - (Effective October 1, 2010) Rate of interest; late charges; processing fees.
§ 6.2-1520. (Effective October 1, 2010) Rate of interest; late charges;processing fees.
A. A licensee may charge and receive interest on loans of:
1. Not more than $2,500, at a single annual rate not to exceed 36 percent; and
2. More than $2,500, at such single annual rate as shall be stated in theloan contract.
The annual rate of interest shall be charged only upon principal balancesoutstanding from time to time. Interest shall not be charged on an add-onbasis and shall not be compounded or paid, deducted or received in advance.For the purpose of calculating interest under this section, a year may be anyperiod of time consisting of 360 or 365 days.
B. A licensee may impose a late charge for failure to make timely payment ofany installment due on a debt, which late charge shall not exceed fivepercent of the amount of such installment payment. The late charge shall bespecified in the loan contract between the lender and the borrower. Forpurposes of this section, "timely payment" means a payment made by the datefixed for payment or within a period of seven calendar days after such fixeddate.
C. A licensee may charge and receive a processing fee, charged on theprincipal amount of the loan, for processing the loan contract. Theprocessing fee shall be stated in the loan contract. Such processing feeshall be deemed to constitute interest charged on the principal amount of theloan for purposes of determining whether the interest charged on a loan ofnot more than $2,500 exceeds the 36 percent annual interest rate limitationimposed by subdivision A 1.
(1995, c. 2, § 6.1-272.1; 2001, c. 308; 2010, c. 794.)