Bill > HB725

This bill requires that when a consumer has an open-end credit plan, such as a credit card, with multiple temporary lower interest rates (called "promotional annual percentage rates") that expire at different times, any payment made by the consumer must be applied to the balance with the promotional rate that expires soonest, unless the consumer and the creditor have a written agreement stating otherwise. An "open-end credit contract or plan" refers to a revolving credit account where a consumer can make repeated purchases and payments, like a credit card. A "promotional annual percentage rate" is a temporary, lower interest rate offered for a specific "promotional period" on a portion of the balance, known as the "promotional balance," before the standard, higher interest rate applies after the "expiration date." This provision aims to ensure that consumers benefit from their promotional rates by paying down the balances with the earliest expiring rates first.

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https://lis.virginia.gov/bill-details/20261/HB725