81R10940 CLG-F
By: Craddick H.B. No. 2211
A BILL TO BE ENTITLED
AN ACT
relating to a restriction on the services provided by a credit
services organization with respect to certain extensions of
consumer credit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 393, Finance Code, is
amended by adding Section 393.308 to read as follows:
Sec. 393.308. SERVICES FOR CERTAIN LOANS PROHIBITED. (a)
This section does not apply to an extension of consumer credit for
the express purpose of financing the purchase of a motor vehicle
used as security for the debt.
(b) A credit services organization or a representative of
the organization may not obtain, facilitate, or assist in obtaining
an extension of consumer credit for a consumer in which any of the
following is given as security for or in connection with the debt:
(1) a motor vehicle certificate of title;
(2) the consumer's personal check to be cashed or
deposited at a designated future date; or
(3) an authorization to debit at a designated future
date a deposit account maintained by the consumer.
SECTION 2. This Act takes effect September 1, 2009.