W. Va. Code R. § 106-11-7

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 106-11-7 - Optional End Term Debt Cancellation Fee

7.1. Balloon Note Secured by Motor Vehicle-- A lender or creditor may, at the end of the term of a balloon loan or note secured by a motor vehicle, offer, as an option, to accept return of the motor vehicle and charge and collect a fee to cancel all of the debtor's liability for amounts exceeding the value of the collateral securing the obligation. The fee may include or be in addition to excess mileage fees and payments for damages to the vehicle. The fee is a permissible additional charge: Provided, That,

7.1.a. The borrower is provided the option to pay off the loan or debt, or to refinance the loan or debt without penalty; and

7.1.b. The amount of the initial balloon loan or note exceeded $2,000 and the amount actually owing at the end of that balloon loan or note and at the time the fee is imposed exceeds $1,000.

W. Va. Code R. § 106-11-7