Bill Text: TX HB3021 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to best practices for credit services organizations.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-03-22 - Left pending in committee [HB3021 Detail]
Download: Texas-2011-HB3021-Introduced.html
| 82R8790 ATP-D | ||
| By: Creighton | H.B. No. 3021 | |
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| relating to best practices for credit services organizations. | ||
| 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. BEST PRACTICES. (a) A credit services | ||
| organization shall implement best practices as provided by this | ||
| section. | ||
| (b) To implement best practices, a credit services | ||
| organization must: | ||
| (1) fully outline in contracts between the credit | ||
| services organization and the consumer the terms of the credit | ||
| services provided by the organization, including the cost of the | ||
| service expressed as a dollar amount in the finance charge and as a | ||
| component of the annual percentage rate for any loan that a consumer | ||
| obtains through the organization's credit services; | ||
| (2) comply with all applicable laws and rules, | ||
| including registration with the secretary of state; | ||
| (3) advertise credit services in a manner that is not | ||
| false, misleading, or deceptive, and promote only the responsible | ||
| use of financial products and services; | ||
| (4) implement procedures to inform consumers of the | ||
| intended use of their credit service; | ||
| (5) give consumers the right to rescind, at no cost, | ||
| credit service transactions on or before the third day after the | ||
| date of the credit service transaction, as required by Section | ||
| 393.202; | ||
| (6) collect past due accounts in a professional, fair, | ||
| and lawful manner, not use unlawful threats or intimidation to | ||
| collect accounts, and use the collection limitations contained in | ||
| Chapter 392 and the federal Fair Debt Collection Practices Act (15 | ||
| U.S.C. Section 1692 et seq.) to guide the credit services | ||
| organization's practice of collections; | ||
| (7) not threaten or pursue criminal action against a | ||
| consumer as a result of the consumer's default on a credit service | ||
| agreement; | ||
| (8) participate in self-policing the industry; | ||
| (9) comply with any federal and state laws on doing | ||
| business with the military and related covered persons; | ||
| (10) if offering credit services to consumers in this | ||
| state through the Internet, comply with this chapter and any other | ||
| applicable laws and rules applicable to the credit services | ||
| organization's business; | ||
| (11) post a copy of the best practices described by | ||
| this section in all of the credit services organization's business | ||
| locations in a visible and conspicuous location; | ||
| (12) implement and maintain complaint handling | ||
| procedures that include a timely review and response to consumer | ||
| complaints and concerns, and maintain and post the credit services | ||
| organization's own toll-free consumer hotline number in each of the | ||
| organization's business locations; and | ||
| (13) make available consumer financial literacy | ||
| materials to consumers in all of the organization's business | ||
| locations. | ||
| (c) To implement best practices, in addition to the | ||
| requirements of Subsection (b), a credit services organization that | ||
| obtains, facilitates, or assists in obtaining an extension of | ||
| consumer credit for a consumer in which a motor vehicle certificate | ||
| of title is given as security for or in connection with the debt | ||
| must also: | ||
| (1) inform the consumer in writing that if the | ||
| consumer pledges a vehicle as collateral, the consumer could lose | ||
| the vehicle if the transaction is not fully repaid, by: | ||
| (A) presenting the information in bold, | ||
| conspicuous type in the loan documents; or | ||
| (B) requiring the consumer to initial this | ||
| provision in the loan documents or on a separate notice; | ||
| (2) use nationally or regionally recognized appraisal | ||
| standards in valuing a vehicle; | ||
| (3) when perfecting a security interest in any motor | ||
| vehicle certificate of title collateral, comply with all laws and | ||
| rules regarding the pledge of the vehicle as collateral, including: | ||
| (A) the proper filing of liens with the Texas | ||
| Department of Motor Vehicles through the appropriate county | ||
| assessor-collector's office; and | ||
| (B) the statutory duties in Chapter 9, Business & | ||
| Commerce Code, regarding the disposition of collateral; | ||
| (4) inform the consumer in writing that the consumer | ||
| may get the consumer's vehicle back at any time after repossession | ||
| and before a sale by paying the amount owed; and | ||
| (5) comply with the Business & Commerce Code and other | ||
| applicable law when collecting vehicle-secured accounts. | ||
| SECTION 2. This Act takes effect September 1, 2011. | ||
