Relating to the regulation of certain short-term consumer loans; imposing an assessment and fees; adding provisions subject to a criminal penalty; requiring an occupational license.
Impact
The impact of HB 3824 on state laws includes a more robust framework for consumer protection within the lending industry, particularly regarding short-term loans. By mandating licensing for lenders and establishing guidelines for permissible rates and fees, the bill aims to reduce predatory lending practices. It also enhances accountability and transparency by requiring lenders to provide comprehensive disclosures about the financial terms of loans. Additionally, the act aims to promote financial literacy through provisions for creating a Financial Literacy Fund, which will support educational initiatives and services to help consumers better manage credit and financial planning.
Summary
House Bill 3824 is designed to regulate certain types of short-term consumer loans, with a specific focus on loans secured by motor vehicles. This legislation establishes provisions for authorized lenders, requiring them to obtain a license to operate within this sector while outlining strict guidelines on interest computations and the imposition of various fees associated with these loans. Specifically, it mandates a maximum interest rate of 12% for loans secured by motor vehicles, with provisions for acceptable customary fees that do not count toward the interest threshold established in the law. Additionally, lenders are required to provide clear disclosures regarding loan terms to consumers to enhance their understanding and awareness of their financial commitments.
Contention
Notable points of contention surrounding HB 3824 might revolve around the potential restrictions imposed on lenders, particularly smaller or less established entities. Opponents argue that the regulatory burdens could limit loan availability to consumers who might be in urgent need of short-term financing, particularly those without access to traditional credit avenues. Furthermore, discussions may arise concerning the implications of interest rate caps and the allowable fees, challenging whether they adequately protect consumers without stifling the financial institutions' ability to offer loans competitively. Balancing consumer protections with access to credit remains a critical discussion point among stakeholders.
Relating to the licensing and regulation of child swim instruction operators; requiring an occupational license; imposing penalties, including administrative penalties; authorizing fees.
Relating to the licensing and regulation of child swim instruction operators; requiring an occupational license; imposing penalties, including administrative penalties; authorizing fees.
Relating to the authorization, licensing, and regulation of casino gaming and sports wagering in this state, to the creation, powers, and duties of the Texas Gaming Commission, to the support of the horse racing industry and reform of horse racing and greyhound racing, and to other provisions related to gambling; imposing and authorizing administrative and civil penalties; imposing taxes; imposing and authorizing fees; requiring occupational licenses; creating criminal offenses.
Relating to the regulation of sports wagering; requiring occupational permits; authorizing fees; imposing a tax; decriminalizing wagering on certain sports events; creating criminal offenses; providing administrative penalties.
Relating to the regulation of sports wagering; requiring occupational permits; authorizing fees; imposing a tax; decriminalizing wagering on certain sports events; creating criminal offenses; providing administrative penalties.
Relating to the licensing and regulation of lactation consultants and the creation of the Lactation Consultant Advisory Board; requiring an occupational license; imposing fees; providing penalties; creating a criminal offense.
Relating to the licensing and regulation of anesthesiologist assistants; requiring an occupational license; providing an administrative penalty; authorizing fees.
Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.
Relating to credit services organizations and extensions of consumer credit, including extensions of consumer credit facilitated by credit services organizations.
Relating to the regulatory authority of the consumer credit commissioner and to fees and interest charged in connection with consumer credit transactions; authorizing an administrative penalty.
Relating to the regulation of consumer credit transactions and the regulatory authority of the Office of Consumer Credit Commissioner; amending provisions subject to a criminal penalty.