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

Texas House Bill 190 (Prior Session Legislation)

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 - Dead) 2019-04-25 - Left pending in committee [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.