81R5104 ATP-D
By: Hilderbran H.B. No. 1336
A BILL TO BE ENTITLED
AN ACT
relating to the disclosure and increase of credit card interest
rates and fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 4, Finance Code, is amended by
adding Chapter 346A to read as follows:
CHAPTER 346A. CREDIT CARD INTEREST RATES
Sec. 346A.001. DEFINITION. In this chapter, "credit card"
means a card or device issued under an agreement by which a credit
card issuer gives to a cardholder the right to obtain credit from
the issuer or another person.
Sec. 346A.002. DISCLOSURE OF INTEREST RATE REQUIRED;
INCREASE OF DISCLOSED RATES PROHIBITED. (a) At the time that a
credit card agreement is entered into, the credit card issuer must
disclose to the cardholder all interest rates and fees that may
apply to the account.
(b) A credit card issuer may not charge an interest rate or
fee greater than a rate or fee disclosed under Subsection (a).
Sec. 346A.003. NOTIFICATION OF INTEREST RATE INCREASE. A
credit card issuer shall notify a cardholder of any interest rate
increase that will apply to the credit card account before the
increase takes effect.
Sec. 346A.004. RATE INCREASE RESULTING FROM PAST DUE
PAYMENT. A credit card issuer may increase an interest rate
applicable to a credit card account based on a past due payment only
if the past due payment is made after the 14th day after the date on
which the payment was due.
Sec. 346A.005. PROHIBITED RATE INCREASE OR FEE VOID. An
interest rate or fee increase that violates this chapter has no
effect.
SECTION 2. Chapter 346A, Finance Code, as added by this Act,
applies only to a credit card agreement entered into, amended, or
renewed on or after the effective date of this Act. A credit card
agreement entered into, amended, or renewed before the effective
date of this Act is governed by the law in effect on the date the
agreement was entered into, amended, or renewed, and the former law
is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.