Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 200 - SHORT-TERM LENDING › Section 10VAC5-200-100 - Conducting other business

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				This section governs the conduct of any business other than short-term lending
				where a licensed short-term lending business is conducted. As used in this
				section, the term "other business operator" refers to a licensee or third
				party, including an affiliate or subsidiary of the licensee, who conducts or
				wants to conduct other business from one or more short-term lending offices.
1. Pursuant to §
										6.2-1820
				of the Code of Virginia, a licensee shall not conduct the business of making
				short-term loans at any office, suite, room, or place of business where any
				other business is solicited or conducted, except a check cashing business
				registered under Chapter 21 (§
										6.2-2100 et seq.) of
				Title 6.2 of the Code of Virginia, a motor vehicle title lending business
				licensed under Chapter 22 (§
										6.2-2200
				et seq.) of Title 6.2 of the Code of Virginia, or such other business as the
				commission determines should be permitted, and subject to such conditions as
				the commission deems necessary and in the public interest.
2. Notwithstanding any provision of this
				section or order entered by the commission prior to October 1, 2010, the
				following other businesses shall not be conducted from any office, suite, room,
				or place of business where a licensed short-term lending business is conducted:
a. Selling insurance or enrolling borrowers
				under group insurance policies.
b.
				Making loans under an open-end credit plan as described in §
											6.2-312
				of the Code of Virginia.
3. This section shall not apply to any other
				business that is transacted solely with persons residing outside of the
				Commonwealth.
4. Notwithstanding
				any provision of this section or order entered by the commission prior to
				January 1, 2021, a licensee shall not make short-term loans at the same
				location at which the licensee, or any affiliate or owner of the licensee,
				conducts business under Chapter 15 (§
										6.2-1500
				et seq.) of Title 6.2 of the Code of Virginia. However, if prior to January 1,
				2021, a licensee obtained authority under §
										6.2-1820
				for the licensee or its affiliate or owner to make consumer finance loans from
				the licensee's payday lending offices, then the licensee or its affiliate or
				owner may continue collecting payments on any outstanding consumer finance
				loans (i) in accordance with the preexisting terms of the loan contracts
				provided that such terms were permitted by law when the loans were made, and
				(ii) subject to the general conditions set forth in subsection E of this
				section.
5. If a licensee accepts
				loan applications, sends or receives loan-related information or documents,
				disburses loan funds, or accepts loan payments on or through the licensee's
				website or mobile application, and any other products or services are or will
				be offered or sold to Virginia residents on or through such website or mobile
				application, then the offer or sale of such other products or services shall
				constitute the conduct of other business and shall be subject to all of the
				provisions of this section to the same extent as if such other business was
				conducted by an other business operator from the licensee's short-term lending
				offices.