2026 SESSION

INTRODUCED

26102303D

HOUSE BILL NO. 725

Offered January 14, 2026

Prefiled January 13, 2026

A BILL to amend the Code of Virginia by adding in Article 4 of Chapter 4 of Title 6.2 a section numbered 6.2-435.1, relating to financial services; open-end credit plans; promotional annual percentage rates.

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Patron—Leftwich

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Referred to Committee on Labor and Commerce

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Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Article 4 of Chapter 4 of Title 6.2 a section numbered 6.2-435.1 as follows:

§ 6.2-435.1. Promotional annual percentage rates.

A. As used in this section:

"Annual percentage rate" has the same meaning as in the federal Truth in Lending Act (15 U.S.C. § 1601 et seq.) and its implementing regulations, as they may be amended from time to time.

"Expiration date" means the date on which a promotional period ends.

"Promotional annual percentage rate" means a temporary annual percentage rate offered by a creditor to a consumer for an open-end credit contract or plan that is lower than the annual percentage rate applicable to such plan after the promotional period.

"Promotional balance" means the balance owed by a customer pursuant to an open-end credit contract or plan to which a promotional annual percentage rate applies.

"Promotional period" means a specified duration during which a promotional annual percentage rate is applicable to an open-end credit contract or plan.

B. Any creditor that permits a consumer to apply more than one promotional annual percentage rate to an open-end credit contract or plan shall apply any payment made by the consumer to the promotional balance with the earliest expiration date unless otherwise expressly agreed in writing by the parties.