Relating to fees paid to the consumer credit commissioner and to fees and interest charged in connection with consumer credit transactions.
Impact
The bill's adjustments to the Finance Code are expected to streamline the fee structure imposed on creditors, which may impact the operational costs for various lending institutions. By introducing a more dynamic approach to fee setting based on business volume, the bill aims to provide a fairer method of fee collection that correlates with institutional capacity. This could facilitate better compliance and oversight by the consumer credit commissioner, although it raises questions regarding how changes will affect small versus large lending institutions differently.
Summary
House Bill 3139 addresses various aspects concerning fees paid to the consumer credit commissioner and the conditions under which fees and interest are charged in consumer credit transactions within the state of Texas. The bill proposes amendments to multiple sections of the Finance Code, with the primary aim of updating the structure of fees related to licensing, examination, and transaction operations involving creditors and lenders. Notably, provisions to set fees based on the volume of regulated business are included, which could allow more significant flexibility and responsiveness in the regulatory landscape.
Conclusion
Overall, HB 3139 represents a significant reform effort aimed at modernizing the state's approach to consumer credit regulation. Its implications for creditor licensing fees and the potential realignment of interest rate structures could reshape the consumer borrowing landscape in Texas. Stakeholder engagement will be crucial in navigating potential disputes regarding the bill's provisions and ensuring consumer protection remains a priority as these changes are implemented.
Contention
As with many financial legislative measures, the potential changes outlined in HB 3139 may not be without contention. Stakeholders such as consumer advocacy groups may argue that the flexibility allowed in setting fees based on business volume could lead to disparities in charges across different types of lending institutions. Furthermore, there may be concerns regarding the impact of increased fees on consumers, particularly the most vulnerable demographic groups who may already face challenges in accessing affordable credit.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to a restriction on total charges charged for extensions of consumer credit that a credit services organization obtains for a consumer or assists a consumer in obtaining.
Relating to a restriction on total charges charged for certain extensions of consumer credit that are facilitated by credit access businesses and entered into by consumers residing in disaster areas.
Relating to small business recovery funds and insurance tax credits for certain investments in those funds; imposing a monetary penalty; authorizing fees.