Virginia Senate Bill SB974

Virginia 2023 Regular Session

• Introduced: 1/6/23
• Refer: 1/6/23
• Report Pass: 1/16/23
• Engrossed: 1/19/23
• Refer: 2/10/23
• Report Pass: 2/16/23
• Enrolled: 2/24/23
• Chaptered: 3/24/23
• Passed: 3/24/23

Caption

Consumer finance companies; authority of Attorney General to issue civil investigative demand.

Impact

The impact of SB974 on state laws is significant as it modifies existing provisions under the Code of Virginia, specifically §6.2-1537, which is focused on the powers of the Attorney General. With the expanded ability to seek both monetary and injunctive relief, this amendment allows the Attorney General to act swiftly against unlicensed operations that could be harming consumers. This change aligns with broader legislative goals of consumer protection and maintaining a fair marketplace, ensuring that only duly authorized companies provide financial services.

Summary

SB974 amends the authority of the Attorney General concerning consumer finance companies, enabling the Attorney General to issue civil investigative demands against those suspected of violating consumer finance regulations without a license. This regulation aims to strengthen the enforcement mechanisms available to the Attorney General, specifically in a domain where consumer protections are critical. By allowing a more proactive and flexible approach to regulatory enforcement, the bill seeks to deter potential violations and enhance consumer trust in financial institutions.

Sentiment

The sentiment surrounding SB974 appears to be generally favorable among proponents of consumer protection, including advocacy groups that seek to minimize consumer fraud. The legislative discourse reflects a commitment to safeguarding consumer rights in the financial sector. However, there may also be concerns from businesses about increased scrutiny and regulatory burdens, potentially leading to pushback from industry representatives worried about the implications of stricter oversight.

Contention

Notable points of contention may arise from the balance between adequate regulatory oversight and the operational flexibility of legitimate consumer finance companies. Some stakeholders may argue that while the intent of the bill is to protect consumers, it may also inadvertently impact businesses that comply with regulations. This tension emphasizes the need for a clear understanding of how enforcement actions will be governed and the extent to which the Attorney General can impose demands without infringing on lawful businesses.