SB 613 — Extending interest rate cap to all obligations incurred during military service

CS for SB 613 WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee FISCALSubstitute for Senate Bill 613 NOTE By Senator Willis [Introduced[Reported January 27,21, 2026;2026, from the Committee on the Military] CS for SB 613 A BILL to amend and reenact §15-1F-11 of the Code of West Virginia, 1931, as amended, relating to privileges of members of the National Guard;

referreddefining toterms; the Committee on Military;

and then to the Committee on Finance] Intr SB 613 2026R3066 A BILL to amend and reenact §15-1F-11 of the Code of West Virginia, 1931, as amended, relating to capping interest rates on debts of active servicesservice members toat six percent per annum.annum;

requiring notice to creditors;

and authorizing creditors to petition for relief from interest rate cap in magistrate court.

(b) A member of the West Virginia National Guard called to state active duty by the Governor for a period of thirty 30 days or more, shall have all of the protections, rightsrights, or benefits that are afforded and may accrue to a person on federal active duty under the provisions of 50 U.S.C.

108-108-189 189 (2003).

(c)(1) NotwithstandingFor anypurposes provision of lawthis tosubsection: the contrary, no creditor in connection with an obligation entered into on or after July 1, 2026, shall charge or collect from a person, or spouse of a person, who is on active duty interest or finance charges exceeding six percent per annum during the period that the person is deployed on active duty.

(2)(A) Notwithstanding“Member” means any provisionmember of law to the contrary,West interestVirginia orNational financeGuard chargeswho morehas thanbeen sixcalled percentto perstate annumor thatfederal otherwiseactive wouldduty be incurred but for thea prohibitionperiod inof subsection30 (c)(1)days of thismore. section are forgiven.

(3)(B) The“Obligation” amountmeans of any periodicretail paymentinstallment duesales fromcontract, aother person,contract orfor spousethe purchase of agoods person,or whoservices, isor onbond, activebill, dutynote, underor theother termsinstrument of thewriting obligationfor shall be reduced by the amountpayment of themoney interestarising andout finance charges forgiven under subsection (c)(2) of thisa sectioncontract thator isother allocabletransaction to the period for which the periodicpurchase paymentof isgoods made.or services.

(4)(2) InNotwithstanding orderany forprovision anof obligationthis tocode be subject to the interestcontrary, andno financecreditor chargesin limitationconnection ofwith thisan section,obligation theentered person,into on or spouseafter ofJuly the1, person2026, on active duty, shall providecharge theor creditorcollect withfrom written notice and a copymember, ofor thefrom militaryhis or gubernatorialher ordersspouse, callinginterest theor personfinance tocharges activein dutyexcess and of anysix orderspercent furtherper extendingannum activeduring duty, not later than 180 days after the dateperiod ofthat the Intrmember SBis 613serving 2026R3066on person's termination of or release from active duty.

(5)(3) UponAny receiptinterest ofor thefinance writtencharges noticegreater andthan asix copypercent ofper theannum ordersthat referredotherwise towould inbe subsectionincurred (c)(4)by ofa thismember, section,or theby creditorhis shallor treather spouse, but for the obligationprohibition inset accordanceforth within subsectionsubdivision (c)(1)(2) of this section,subsection effectiveshall asbe offorgiven theby date on which the personcreditor. is on active duty.

(6)1 ACS courtfor maySB grant613 a(4) creditorThe reliefamount fromof theany interestperiodic andpayment financedue chargesfrom limitationa ofmember, thisor Section,from if,his inor theher opinionspouse, ofunder the court,terms theof abilityan ofobligation theaffected person,by orthe spouseprovisions of thethis person,subsection onshall activebe dutyrecalculated to payreflect the amount of interest or finance charges withrequired respect to thebe obligationforgiven atunder asubdivision rate(3) in excess of sixthis percentsubsection perand annumwhich isare notallocable materiallyto affectedthe byperiod reasonfor ofwhich the person'speriodic servicepayment onis activemade. duty.

(5) In order for an obligation to be subject to the limitations of this subsection, a member, or his or her spouse, shall provide the creditor with written notice and a copy of the military orders calling the member to active duty and of any orders further extending active duty, not later than 180 days after the date of the member’s termination of or release from active duty.

Upon receipt of such notice and orders, the creditor shall treat the obligation in accordance with the provisions of this subsection, effective as of the date on which the member’s active duty order began.

(6) A creditor owed an obligation by a member, or by his or her spouse, who has sought the limitations provided under this subsection may file an action in the magistrate court of the county in which the member resides seeking relief from the interest and finance charge limitations:

Provided, however, That the court may grant such a petition only upon a finding, by clear and convincing evidence, that the ability of the member or his or her spouse to pay interest or finance charges with respect to the obligation at a rate in excess of six percent per annum is not materially affected by reason of the member's service on active duty.