Bill Text: TX SB110 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to fees paid to certain credit services organizations in connection with certain extensions of consumer credit.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2019-02-01 - Referred to Business & Commerce [SB110 Detail]

Download: Texas-2019-SB110-Introduced.html

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By: Menéndez S.B. No. 110

A BILL TO BE ENTITLED
AN ACT
relating to fees paid to certain credit services organizations in
connection with certain extensions of consumer credit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 302, Finance Code, is
amended by adding Section 302.003 to read as follows:
Sec. 302.003. RESTRICTION ON CERTAIN THIRD-PARTY FEES TO
OBTAIN, ARRANGE, OR GUARANTEE CERTAIN EXTENSIONS OF CONSUMER
CREDIT. The amount of a fee paid or to be paid to a credit services
organization subject to Chapter 393 to assist a consumer in
transacting, arranging, guaranteeing, or negotiating an extension
of credit or to obtain for a consumer an extension of credit is
considered interest for usury purposes under state law if:
(1) the extension of credit is secured by a
non-purchase money security interest in personal property or is
unsecured; and
(2) the proceeds of the extension of credit are used
for personal, family, or household purposes.
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, 2017.