Bill Text: TX HB1786 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to regulation of certain credit services organizations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-04 - Referred to Pensions, Investments & Financial Services [HB1786 Detail]
Download: Texas-2019-HB1786-Introduced.html
86R10802 GRM-D | ||
By: Rosenthal | H.B. No. 1786 |
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relating to regulation of certain credit services organizations. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 393.221(1), Finance Code, is amended to | ||
read as follows: | ||
(1) "Credit access business" means a credit services | ||
organization that obtains for a consumer or assists a consumer in | ||
obtaining an extension of consumer credit, including an extension | ||
of consumer credit in the form of a deferred presentment | ||
transaction or a motor vehicle title loan. | ||
SECTION 2. Section 393.222(a), Finance Code, is amended to | ||
read as follows: | ||
(a) A credit access business shall post, in a conspicuous | ||
location in an area of the business accessible to consumers and on | ||
any Internet website, including a social media site, maintained by | ||
the credit access business: | ||
(1) a schedule of all fees to be charged for services | ||
performed by the credit access business in connection with the | ||
extension of consumer credit, including deferred presentment | ||
transactions and motor vehicle title loans[ |
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(2) a notice of the name and address of the Office of | ||
Consumer Credit Commissioner and the telephone number of the | ||
office's consumer helpline; and | ||
(3) for an extension of consumer credit in the form of | ||
a deferred presentment transaction or motor vehicle title loan, a | ||
notice that reads as follows: | ||
"An advance of money obtained through a payday loan or auto | ||
title loan is not intended to meet long-term financial needs. A | ||
payday loan or auto title loan should only be used to meet immediate | ||
short-term cash needs. Refinancing the loan rather than paying the | ||
debt in full when due will require the payment of additional | ||
charges." | ||
SECTION 3. Section 393.223(a), Finance Code, is amended to | ||
read as follows: | ||
(a) Before performing services described by Section | ||
393.221(1), a credit access business must provide to a consumer a | ||
disclosure adopted by rule of the Finance Commission of Texas that | ||
discloses the following in a form prescribed by the commission: | ||
(1) the interest, fees, and annual percentage rates, | ||
as applicable, to be charged on the extension of consumer credit | ||
that the credit access business proposes to obtain for the consumer | ||
or assist the consumer in obtaining [ |
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comparison to interest, fees, and annual percentage rates to be | ||
charged on other alternative forms of consumer debt; | ||
(2) the amount of accumulated fees a consumer would | ||
incur by renewing or refinancing the extension of consumer credit | ||
if it were to remain [ |
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weeks, one month, two months, and three months; and | ||
(3) information regarding the typical pattern of | ||
repayment of extensions of consumer credit, including deferred | ||
presentment transactions and motor vehicle title loans. | ||
SECTION 4. Section 393.601(2), Finance Code, is amended to | ||
read as follows: | ||
(2) "Credit access business" means a credit services | ||
organization that obtains for a consumer or assists a consumer in | ||
obtaining an extension of consumer credit, including an extension | ||
of consumer credit in the form of a deferred presentment | ||
transaction or a motor vehicle title loan. | ||
SECTION 5. Section 393.602(a), Finance Code, is amended to | ||
read as follows: | ||
(a) This subchapter applies only to a credit services | ||
organization that obtains for a consumer or assists a consumer in | ||
obtaining an extension of consumer credit [ |
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SECTION 6. The changes in law made by this Act apply only to | ||
an extension of consumer credit made on or after the effective date | ||
of this Act. An extension of consumer credit made before the | ||
effective date of this Act is governed by the law in effect on the | ||
date the extension of consumer credit was made, and the former law | ||
is continued in effect for that purpose. | ||
SECTION 7. This Act takes effect September 1, 2019. |