Texas House Bill HB3302

Texas 2009 - 81st Regular

Caption

Relating to the fees charged by certain check-cashing businesses; providing penalties.

Note

Overall, HB 3302 marks an important step towards providing regulatory oversight on check-cashing businesses and protecting consumers from potential predatory practices, though it will require careful consideration of its implementation and potential unintended consequences on service availability.

Impact

By implementing standards for fees charged by check-cashing services, HB 3302 seeks to prevent consumer exploitation and ensure that individuals using these services are not overcharged. The regulations provide a clear legal framework about what fees can be expected, which may help consumers make more informed choices. The Finance Commission of Texas is also given the authority to adopt additional rules to further clarify and manage the implementation of this bill, suggesting a proactive approach to consumer financial services oversight.

Summary

House Bill 3302 pertains to the fees charged by certain check-cashing businesses and aims to establish a regulatory framework governing these fees. The bill introduces a new chapter in the Texas Finance Code that defines what constitutes a check-cashing business and lays out the permissible fees that these businesses can charge. Specifically, the bill allows check-cashing businesses to charge fees varying from $5 to a percentage of the check’s face value, depending on the type of check being cashed. This aims to create transparency in the fees charged by such services and enhance consumer protection.

Contention

While the bill aims to enhance consumer protection, it may face pushback from check-cashing businesses that might view these regulations as limiting their ability to set prices competitively. Critics may argue that the maximum fee limits could adversely affect the viability of smaller check-cashing services, particularly in low-income areas where the need for such services is high. Additionally, the administrative penalties for violations—up to $5,000—could raise concerns about the compliance burden on these businesses.