Virginia Administrative Code › Title 10 - FINANCE AND FINANCIAL INSTITUTIONS › Agency 5 - STATE CORPORATION COMMISSION › Chapter 210 - MOTOR VEHICLE TITLE LENDING › Section 10VAC5-210-70 - Conducting other business

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				This section governs the conduct of any business other than motor vehicle title
				lending where a licensed motor vehicle title 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 motor vehicle
				title lending offices.
1. Pursuant to §
										6.2-2218.1 of the
				Code of Virginia, a licensee shall not conduct the business of making motor
				vehicle title 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 short-term lending business licensed under
				Chapter 18 (§
										6.2-1800 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. No person shall engage in the business of
				selling insurance or enrolling borrowers under group insurance policies from
				any office, suite, room, or place of business where a licensed motor vehicle
				title lending business is conducted.
3. This section shall not apply to any other
				business that is transacted solely with persons residing outside of
				Virginia.
4. Notwithstanding any
				provision of this section or order entered by the commission prior to January
				1, 2021, the business of making loans under an open-end credit plan as
				described in §
										6.2-312 of
				the Code of Virginia shall not be conducted from any office, suite, room, or
				place of business where a licensed motor vehicle title lending business is
				conducted. However, if prior to January 1, 2021, a licensee received commission
				authority for an other business operator to conduct open-end credit business
				from the licensee's motor vehicle title lending offices, the other business
				operator may continue collecting payments on any outstanding open-end loans (i)
				in accordance with the preexisting terms of the open-end credit agreements
				provided that such terms were permitted by law when the agreements were made,
				and (ii) subject to the conditions that were imposed by the commission in its
				approval order.
5. Notwithstanding
				any provision of this section or order entered by the commission prior to
				January 1, 2021, a licensee shall not make motor vehicle title 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 received commission authority for the licensee or its affiliate or
				owner to make consumer finance loans from the licensee's motor vehicle title
				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 D of this section.
6. 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 motor vehicle title lending
				offices.