81R10956 PMO-F
By: Leibowitz H.B. No. 3021
A BILL TO BE ENTITLED
AN ACT
relating to the interest and fees that may be charged for certain
consumer loans; providing a criminal penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter E, Chapter 342, Finance Code, is
amended by adding Section 342.200 to read as follows:
Sec. 342.200. INTEREST CHARGES: GENERAL LIMIT,
COMPUTATION, AND PAYMENT. (a) Notwithstanding any other provision
of this subchapter, Subchapter F, or a rule adopted under this
chapter, unless the provision sets a lower limit on an interest
charge, a loan contract under this chapter that is not secured by
real property may not provide for an interest charge for the cash
advance that exceeds 30 percent a year, including any fees included
in the computation of interest under this chapter or other law.
(b) A charge for interest must be computed and paid as a
percentage of the unpaid principal balance. For purposes of this
subsection, "unpaid principal balance" means the balance that has
not been paid, exclusive of any interest, service charges, or other
charges related to the loan.
(c) An interest rate charged on an overdue balance may not
exceed the maximum rate charged before the balance becomes due.
SECTION 2. Subchapter H, Chapter 342, Finance Code, is
amended by adding Section 342.354 to read as follows:
Sec. 342.354. REFUND OF PRECOMPUTED INTEREST: OTHER LOANS.
(a) This section applies only to a loan contract to which Section
342.351 or 342.352 does not apply.
(b) If the contract is prepaid in full, the lender shall
refund or credit to the borrower unearned interest charges paid by
the borrower, as computed by the actuarial method or another method
that is at least as favorable to the borrower.
SECTION 3. Subchapter M, Chapter 342, Finance Code, is
amended by adding Section 342.606 to read as follows:
Sec. 342.606. INTEREST AND FEES FOR DEFERRED PRESENTMENT
TRANSACTION. (a) A lender may not charge or receive interest or
fees in connection with a deferred presentment transaction other
than the interest and fees specifically authorized by this section.
(b) A deferred presentment transaction may provide for an
administrative fee not to exceed $5 for each transaction. An
administrative fee is not included in the computation of interest.
(c) If there are insufficient funds to pay a check on the
date of presentment, a lender may charge a fee not to exceed the
greater of $15 or the amount charged to the lender by the financial
institution. Only one fee may be charged under this section for a
single check, regardless of whether the check has been deposited
and returned more than once. A fee under this subsection is the
exclusive authorized charge for late payment.
(d) A person who violates this section commits an offense.
An offense under this subsection is a state jail felony.
SECTION 4. This Act takes effect September 1, 2009.