Bill Text: TX HB3391 | 2021-2022 | 87th Legislature | Introduced

Texas House Bill 3391 (Prior Session Legislation)

Introduced

Bill Title: Relating to fees paid to a third party in connection with certain extensions of consumer credit.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2021-04-14 - Left pending in committee [HB3391 Detail]

Download: Texas-2021-HB3391-Introduced.html

	87R7569 MLH-F

	By: Turner of Tarrant	H.B. No. 3391



	A BILL TO BE ENTITLED
	AN ACT
	relating to fees paid to a third party in connection with certain
	extensions of consumer credit.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter A, Chapter 302, Finance Code, is
	amended by adding Section 302.003 to read as follows:
	Sec. 302.003. PROHIBITION ON THIRD-PARTY FEES TO ARRANGE OR
	GUARANTEE CERTAIN EXTENSIONS OF CONSUMER CREDIT. (a) A fee paid or
	to be paid to a third party to assist a consumer in the transacting,
	arranging, guaranteeing, or negotiating of an extension of credit
	may not be contracted for, charged, or received by a creditor or
	third party in connection with the extension of credit if:
	(1) the extension of credit is secured by a
	non-purchase money security interest in personal property or is
	unsecured; and
	(2) the proceeds of the extension of credit are used
	for personal, family, or household purposes.
	(b) The amount of a fee contracted for, charged, or received
	in violation of Subsection (a) is considered interest for usury
	purposes under state law.
	SECTION 2. 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.
	SECTION 3. This Act takes effect September 1, 2021.