Bill Text: TX HB3855 | 2019-2020 | 86th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to methods of computing interest charges on certain consumer loans.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB3855 Detail]
Download: Texas-2019-HB3855-Comm_Sub.html
Bill Title: Relating to methods of computing interest charges on certain consumer loans.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB3855 Detail]
Download: Texas-2019-HB3855-Comm_Sub.html
By: Longoria, Murphy (Senate Sponsor - Creighton) | H.B. No. 3855 | |
(In the Senate - Received from the House May 8, 2019; | ||
May 10, 2019, read first time and referred to Committee on Business & | ||
Commerce; May 20, 2019, reported favorably by the following vote: | ||
Yeas 9, Nays 0; May 20, 2019, sent to printer.) | ||
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relating to methods of computing interest charges on certain | ||
consumer loans. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 342.201, Finance Code, is amended by | ||
adding Subsection (e-1) to read as follows: | ||
(e-1) The interest charge under Subsection (e) must be | ||
contracted for, charged, or received using the scheduled | ||
installment earnings method or the true daily earnings method under | ||
one of the following methods: | ||
(1) applying the applicable daily rate to each part of | ||
the unpaid principal balance corresponding to the brackets | ||
described by Subsection (e) for the actual or scheduled number of | ||
days during a payment period; or | ||
(2) applying a single equivalent daily rate to the | ||
unpaid principal balance for the actual or scheduled number of days | ||
during a payment period, where the single equivalent daily rate is | ||
determined at the inception of the loan using the scheduled | ||
installment earnings method and would earn an amount of interest | ||
authorized under Subsection (e) if the debt were paid to maturity | ||
according to the schedule of payments. | ||
SECTION 2. This Act takes effect September 1, 2019. | ||
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