Texas House Bill HB3166

Texas 2009 - 81st Regular

Caption

Relating to certain disclosures regarding the terms of a credit card agreement.

Impact

The passing of HB3166 would notably impact existing finance regulations by setting a clearer standard for how credit card changes must be communicated to consumers. Credit card issuers will be required to adopt practices that comply with these new disclosure standards for any agreement entered into, amended, or renewed after the effective date. This change aims to provide consumers with better insight into the financial products they are using, potentially fostering trust and promoting accountability within the credit industry.

Summary

House Bill 3166 introduces new requirements for credit card issuers regarding the disclosure of changes to the terms of credit card agreements. This legislation amends the Texas Finance Code by adding Chapter 346A, which mandates that, whenever a credit card issuer needs to disclose a change in their agreement terms, they must provide a clear and specific comparative description of the agreement as it existed versus the new terms following the change. The intent of the bill is to enhance transparency and consumer understanding when it comes to credit card agreements, thereby empowering cardholders to make informed decisions.

Contention

While the bill aims to enhance consumer protections, some industry stakeholders may express concerns about the implications of stricter disclosure requirements. Critics might argue that such measures could lead to increased compliance costs for credit card issuers, which may be passed on to consumers in the form of higher fees or less favorable terms. The debate around HB3166 could center on balancing the need for consumer protection with the operational realities faced by credit card companies in the current financial landscape.