Texas House Bill HB2432

Texas 2021 - 87th Regular

Caption

Relating to increasing the maximum reference base amount for certain consumer loans.

Impact

The impact of HB2432 largely pertains to the regulatory framework surrounding consumer loans in Texas. By raising the maximum reference base amount, the bill aligns with the needs of consumers, particularly those who may require larger cash advances to manage their finances. This change is aimed at improving access to credit for individuals facing financial constraints. The increased limits and associated handling charges may make loans more viable options for consumers, thereby contributing to economic activity.

Summary

House Bill 2432 proposes amendments to the Texas Finance Code concerning the maximum reference base amount for certain consumer loans. The bill specifically increases the maximum cash advance amount for loans from $200 to $300, with a provision to implement different charges that may apply to these types of loans. By adjusting these amounts, the bill seeks to provide greater flexibility in consumer lending practices and potentially enhance the financial well-being of consumers by allowing for higher available credit.

Contention

Debate surrounding HB2432 may center on the potential risks associated with increased consumer debt as a result of allowing higher cash advances. Critics could argue that while the bill aims to provide more borrowing power to consumers, it may inadvertently encourage irresponsible borrowing behavior or lead to higher levels of debt among vulnerable populations. Thus, concerns may arise regarding consumer protections, especially given the added financial burden that might accompany larger cash advances. Balancing borrower welfare with access to credit will likely be a key point of discussion in committee hearings.