Bill Text: TX HB190 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to verification by a credit services organization of a consumer's ability to repay an extension of consumer credit.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2018-11-12 - Filed [HB190 Detail]

Download: Texas-2019-HB190-Introduced.html
  86R1206 GRM-D
 
  By: Bernal H.B. No. 190
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to verification by a credit services organization of a
  consumer's ability to repay an extension of consumer credit.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter D, Chapter 393, Finance Code, is
  amended by adding Section 393.308 to read as follows:
         Sec. 393.308.  ENSURING ABILITY TO REPAY EXTENSION OF
  CONSUMER CREDIT. (a) A credit services organization may not obtain
  for a consumer or assist a consumer in obtaining, including by
  providing advice, an extension of consumer credit unless the credit
  services organization finds, using independently verifiable
  documentation of income and obligations, that the consumer can
  reasonably:
               (1)  repay in cash, in accordance with the time and
  schedule of payments established by contract and applicable law,
  the extension of consumer credit and all associated fees and costs;
  and
               (2)  pay due payments on all known obligations of the
  consumer concurrently.
         (b)  The credit services organization must retain all
  documentation used under Subsection (a) to establish the ability of
  the consumer to repay an extension of consumer credit.
         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. 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.  For purposes of this
  section, a refinance or renewal of an extension of consumer credit
  is considered made on the date the extension of consumer credit
  being refinanced or renewed was made.
         SECTION 3.  This Act takes effect September 1, 2019.
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