Texas House Bill HB3621

Texas 2009 - 81st Regular

• Out of House Committee: 4/27/09
• Voted on by House: 5/12/09
• Out of Senate Committee: 5/19/09
• Voted on by Senate: 5/25/09
• Governor Action: 6/19/09
• Enrolled: 6/2/09
• Passed: 6/19/09

Caption

Relating to certain charges included in a motor vehicle installment agreement.

Impact

The enactment of HB 3621 is expected to impact consumer protection laws in relation to financing motor vehicles. By regulating how charges, particularly documentary fees, can be applied, the bill aims to provide clarity and prevent potential exploitation by sellers. It establishes a requirement for transparency regarding these fees, ensuring that consumers are informed of additional costs when entering into installment agreements for vehicle purchases. This aligns with broader legislative efforts to enhance consumer rights in financial transactions.

Summary

House Bill 3621 addresses specifications concerning charges included in motor vehicle installment agreements. The bill amends Section 348.006 of the Finance Code, outlining how the principal balance of a retail installment contract is computed. Notably, it includes provisions for a documentary fee that can be charged by retail sellers for handling documentation related to the sale and financing of a motor vehicle. The bill stipulates that the documentary fee must be reasonable, and it provides guidance on how this fee must be disclosed to the buyer in the installment contract and during the sales process.

Contention

While HB 3621 seeks to provide protection to consumers, there are potential points of contention regarding the reasonableness of the fees assessed. Critics may argue that defining what constitutes a 'reasonable amount' for a documentary fee could lead to ambiguity and disputes between consumers and sellers. Additionally, the provision that allows the Finance Commissioner to review and potentially mandate adjustments to fees introduces a layer of oversight that some stakeholders might interpret as regulatory overreach. Balancing consumer protection with the interests of motor vehicle retailers will likely remain a topic of discussion as this bill is implemented.