In a cross-practice effort involving WRVB’s Financial Services and Regulatory Compliance practice groups, Richmond attorneys John Byrum and Jay Spruill convinced the Virginia State Corporation Commission (SCC) to strike a rule prohibiting Consumer Finance Companies (CFCs) from offering certain ancillary services in conjunction with their loans.
Working on behalf several WRVB CFC clients, as well as the Virginia Financial Services Association, John and Jay filed a Petition for Declaratory Judgment with the Virginia SCC challenging Rule 10 VAC 5-60-45 F(1), one of the Bureau of Financial Institutions’ (BFI) Consumer Finance Rules. In a Final Order entered December 14, the SCC agreed with the team’s arguments and struck Rule 10 VAC 5-60-45 F(1).
The decision is thought-to-be the first declaratory judgment involving BFI, and one that will have lasting benefits for Virginia CFCs.
Seeking legal advice on financial services or regulatory compliance matters? Contact John and Jay.