The West Virginia Consumer Credit and Protection Act protects the consumers in West Virginia who obtain a line of credit, loan or lease and make payments on that account from West Virginia. This does not apply to credit obtained outside of West Virginia or government loans.
Co-signors
The West Virginia Consumer Credit and Protection Act protects co-signors from liability. Co-signors are not liable unless they sign a separate notice of liability in addition to the actual loan or credit documents.
Increased Payment Amounts
The Act requires that the lender include in the written agreement if one or more payments will be at least two times larger than the smallest payment for the loan.
Default
If the consumer defaults on the loan or payment, the creditor may send written notice after the consumer has been in default for five days. If the consumer goes into default and receives notice three or more times, the creditor has the right to proceed to take legal action against the consumer.
Collecting Debt
The Act prohibits creditors from using unfair practices to collect a debt. This includes making threats or deception or disclosing information to employers, family or friends.
Garnishments
If the consumer remains in default, the creditor may pursue legal action to garnish the consumer's wages to pay the debt. The Act requires that the garnishment not be greater than 20 percent of the consumer's disposable income. In addition, the Act protects the consumer's job and does not allow employers to fire the employee because of the garnishment.
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