38.2-4706 - Default charge; bad check charge. - Virginia Statutes

§ 38.2-4706. Default charge; bad check charge.

A. If any installment under a premium finance agreement is not paid in fullwithin seven days after it is due, Sundays and holidays included, theinsurance premium finance company may charge and collect a default charge notto exceed five percent of the installment. The default charge shall becollected only once on any installment.

B. An insurance premium finance company may charge and collect a fee, not inexcess of twenty dollars, for each check returned to the insurance premiumfinance company because the drawer had no account or insufficient funds inthe payor bank.

(1981, c. 107, § 38.1-740.2; 1986, c. 562; 1994, c. 123.)