                                 CODE OF VIRGINIA

AUTHORIZED FEES AND CHARGES (§ 6.2-2216)

A. A licensee may charge, collect, and receive only the following fees and
charges in connection with a motor vehicle title loan, provided such fees and
charges are set forth in the written loan contract described in § 6.2-2215.1:

   1. Interest at a simple annual rate not to exceed 36 percent;

   2. Subject to &#xA7; 6.2-2216.1, a monthly maintenance fee that does not
   exceed the lesser of eight percent of the originally contracted loan amount or
   $15, provided the fee is not added to the loan balance on which interest is
   charged;

   3. Any deposit item return fee incurred by the licensee, not to exceed $25, if
   a borrower&#8217;s check or electronic draft is returned because the account
   on which it was drawn was closed by the borrower or contained insufficient
   funds, or the borrower stopped payment of the check or electronic draft;

   4. Damages and costs to which the licensee may become entitled to by law in
   connection with any civil action to collect a loan after default, except that
   the total amount of damages and costs shall not exceed the originally
   contracted loan amount;

   5. Reasonable costs of repossession and sale of the motor vehicle in
   accordance with &#xA7; 6.2-2217, provided that the total amount of such costs
   of repossession and sale that a licensee or any person working on its behalf
   may charge or receive from the borrower shall be limited to an amount equal to
   five percent of the originally contracted loan amount; and

   6. A late charge in accordance with the provisions of &#xA7; 6.2-400 provided
   that the late charge shall not exceed $20.

B. Notwithstanding anything set forth in subsection A, other provisions of this
chapter, or in a motor vehicle title loan agreement, interest shall not accrue
on the principal balance of a motor vehicle title loan from and after:

   1. The date that the motor vehicle securing the title loan is repossessed by
   or at the direction of the licensee; or

   2. Sixty days after the borrower has failed to make a monthly payment on a
   motor vehicle title loan as required by the loan agreement unless the borrower
   has not surrendered the motor vehicle and the borrower is concealing the motor
   vehicle.

C. A licensee shall not be entitled to collect or recover from a borrower any
sum otherwise permitted pursuant to &#xA7; 6.2-302, 8.01-27.2, or 8.01-382. In
no event shall the borrower be liable for fees incurred in connection with the
storage of a motor vehicle securing a title loan.

D. If any person causes a borrower to pay fees related to repossession or sale
of the motor vehicle in excess of the amount allowed under subdivision A 5, or
any fee to store the motor vehicle, the borrower shall be entitled to recover
such amounts or fees from the licensee upon presenting a valid receipt.

HISTORY: 2010, c. 477, § 6.1-496; 2020, cc. 1215, 1258.