Extending interest rate cap to all obligations incurred during military service

2026 Regular Session Introduced by Vince Deeds

SB 613 extends West Virginia’s interest rate cap to all debts incurred by service members during military service, protecting them from high-interest charges.

To Finance

#militaryandveterans

Summary of SB 613 (Session: 2026, West Virginia)

Purpose and intent

SB 613 aims to extend the State’s interest rate cap to all financial obligations incurred by individuals during military service. The bill seeks to ensure that interest charged on debts accrued while a person is serving in the military is subject to the same protections as other capped-rate consumer loans, reducing the risk of excessive interest burdens during or shortly after military service.

Key provisions and changes

Applicability of interest rate cap: The bill extends the existing interest rate cap to all obligations incurred by an individual during military service. This expands the scope beyond specific loan types (if any) to cover a broader set of debts incurred while in service.

Definition of covered obligations: The measure clarifies that debts incurred while an individual is actively serving in the military—during active duty or other approved military statuses—are subject to the cap.

Protection context: The goal is to prevent lenders from charging unreasonably high interest rates on debts incurred while a person is in military service, aligning with broader objectives of protecting servicemembers’ financial well-being.

Potential adjustments or clarifications: The bill may include definitional clarifications (e.g., what constitutes “incurred during military service,” the enforcement framework, and how the cap interacts with variable-rate instruments), though exact wording requires examination of the final substitute.

Affected parties and entities

Servicemembers and veterans: Individuals who incur debts while serving would gain enhanced protections against high interest charges.

Creditors and lenders: Banks, credit unions, consumer finance companies, and other lenders would need to ensure their contracts and pricing comply with the extended cap when debts are incurred during military service.

State agencies and courts: Entities responsible for enforcing state consumer protection and interest-cap laws would administer and adjudicate compliance and any disputes.

Procedural and timeline aspects

Introduction and referrals: SB 613 was introduced in January 2026 and directed to the Military Committee, then to Finance.

Committee actions: On February 20, 2026, a committee substitute was reported (to Finance first), indicating amendments were considered before final compilation for debate and potential passage.

Next steps: If advanced by Finance and the full Senate, the bill would move to the House of Delegates (as applicable in West Virginia’s bicameral process) for consideration and, ultimately, to the Governor for signature or veto.

Practical impact highlights

Provides a uniform protection for servicemembers against predatory or excessively high financing costs incurred during military service.

May affect existing loan agreements retroactively or prospectively, depending on the bill’s final language regarding timing, retroactivity, and enforcement.

Could influence lender underwriting practices and disclosures related to debts incurred in military status.

Note: This summary reflects the bill’s stated purpose and the information available from the action history and sponsors. Final provisions, exact definitions, and effective dates will be determined by the bill’s enacted text and any committee substitutes or floor amendments.