Texas House Bill HB3155

Texas 2009 - 81st Regular

Caption

Relating to the expiration and abandonment of stored value cards.

Impact

The updates presented in HB3155 are intended to enhance consumer protection by enforcing better disclosure requirements and limiting the ability of issuers to impose fees on these cards. For example, any fees associated with handling the card or the card transactions cannot be charged if they cause the card balance to decrease over time. This regulation could lead to increased transparency for consumers, allowing them to make informed decisions before purchasing stored value cards. Such changes may also have a ripple effect on card issuers who will have to adapt their business practices to comply with the revised laws.

Summary

House Bill 3155 is a legislative proposal aimed at amending laws related to stored value cards in Texas. The bill proposes significant changes to the Business & Commerce Code, specifically targeting the issuance, handling, and expiration of these cards. The law establishes clearer guidelines regarding when a stored value card can be deemed abandoned, effectively outlining that a card is presumed abandoned if it is not used within certain time frames—generally after three years from the date of issuance or the expiration date, whichever comes first. Furthermore, the bill ensures that stored value cards do not fall under certain exemptions previously established in existing statutes.

Contention

While HB3155 appears to improve consumer safeguards, there may be debate surrounding the implementation of these regulations. Proponents argue that these provisions are necessary to prevent issuers from taking advantage of consumers by hiding fees and expiration policies. Detractors, potentially from the financial industry, might contend that stricter regulations could stifle business innovation regarding stored value card offerings. Additionally, concerns may arise regarding how these changes affect current stored value cardholders, particularly those who hold cards issued before these amendments take effect.