Banks and credit unions are two of the most common sources of consumer and business loans. These loans may be secured or unsecured, and may take the form of home mortgages, home equity loans, installment loans (loans repaid in monthly installments), auto loans, student loans, and credit cards.
In West Virginia (WV), banks and credit unions are regulated entities that provide various loan products to consumers and businesses. Secured loans, such as home mortgages and auto loans, require collateral, which the lender can claim if the borrower defaults. Unsecured loans, like most credit cards and some personal loans, do not require collateral. Home equity loans allow homeowners to borrow against the equity in their property. Installment loans are repaid over time with a set number of scheduled payments. Student loans can be obtained to pay for education-related expenses. The West Virginia Division of Financial Institutions oversees state-chartered banks and credit unions, ensuring they comply with state regulations, while federal agencies like the Federal Reserve, FDIC, and NCUA oversee federally chartered banks and credit unions. Both state and federal laws, including the West Virginia Consumer Credit and Protection Act, provide a framework for loan terms, disclosures, and consumer protections.