Bill Text: TX HB365 | 2017 | 85th Legislature 1st Special Session | Introduced

Texas House Bill 365 (Prior Session Legislation)

Introduced

Bill Title: Relating to regulation of certain credit services organizations.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2017-08-02 - Referred to Investments & Financial Services [HB365 Detail]

Download: Texas-2017-HB365-Introduced.html

	85S10779 GRM-D

	By: Anchia	H.B. No. 365



	A BILL TO BE ENTITLED
	AN ACT
	relating to regulation of certain credit services organizations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 393.221(1), Finance Code, is amended to
	read as follows:
	(1) "Credit access business" means a credit services
	organization that obtains for a consumer or assists a consumer in
	obtaining an extension of consumer credit, including an extension
	of consumer credit in the form of a deferred presentment
	transaction or a motor vehicle title loan.
	SECTION 2. Section 393.222(a), Finance Code, is amended to
	read as follows:
	(a) A credit access business shall post, in a conspicuous
	location in an area of the business accessible to consumers and on
	any Internet website, including a social media site, maintained by
	the credit access business:
	(1) a schedule of all fees to be charged for services
	performed by the credit access business in connection with the
	extension of consumer credit, including deferred presentment
	transactions and motor vehicle title loans[~~, as applicable~~];
	(2) a notice of the name and address of the Office of
	Consumer Credit Commissioner and the telephone number of the
	office's consumer helpline; and
	(3) for an extension of consumer credit in the form of
	a deferred presentment transaction or motor vehicle title loan, a
	notice that reads as follows:
	"An advance of money obtained through a payday loan or auto
	title loan is not intended to meet long-term financial needs. A
	payday loan or auto title loan should only be used to meet immediate
	short-term cash needs. Refinancing the loan rather than paying the
	debt in full when due will require the payment of additional
	charges."
	SECTION 3. Section 393.223(a), Finance Code, is amended to
	read as follows:
	(a) Before performing services described by Section
	393.221(1), a credit access business must provide to a consumer a
	disclosure adopted by rule of the Finance Commission of Texas that
	discloses the following in a form prescribed by the commission:
	(1) the interest, fees, and annual percentage rates,
	as applicable, to be charged on the extension of consumer credit
	that the credit access business proposes to obtain for the consumer
	or assist the consumer in obtaining [~~a deferred presentment~~
	~~transaction or on a motor vehicle title loan, as applicable,~~] in
	comparison to interest, fees, and annual percentage rates to be
	charged on other alternative forms of consumer debt;
	(2) the amount of accumulated fees a consumer would
	incur by renewing or refinancing the extension of consumer credit
	if it were to remain [~~a deferred presentment transaction or motor~~
	~~vehicle title loan that remains~~] outstanding for a period of two
	weeks, one month, two months, and three months; and
	(3) information regarding the typical pattern of
	repayment of extensions of consumer credit, including deferred
	presentment transactions and motor vehicle title loans.
	SECTION 4. Section 393.601(2), Finance Code, is amended to
	read as follows:
	(2) "Credit access business" means a credit services
	organization that obtains for a consumer or assists a consumer in
	obtaining an extension of consumer credit, including an extension
	of consumer credit in the form of a deferred presentment
	transaction or a motor vehicle title loan.
	SECTION 5. Section 393.602(a), Finance Code, is amended to
	read as follows:
	(a) This subchapter applies only to a credit services
	organization that obtains for a consumer or assists a consumer in
	obtaining an extension of consumer credit [~~in the form of:~~
	[~~(1) a deferred presentment transaction; or~~
	[~~(2) a motor vehicle title loan~~].
	SECTION 6. 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.
	SECTION 7. This Act takes effect December 1, 2017.