| 1 | 1 | | 81R10450 CLG-D |
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| 2 | 2 | | By: Marquez H.B. No. 3744 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the regulation of credit services organizations. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. The heading to Subchapter B, Chapter 393, |
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| 10 | 10 | | Finance Code, is amended to read as follows: |
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| 11 | 11 | | SUBCHAPTER B. REGISTRATION, LICENSING, AND DISCLOSURE STATEMENTS |
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| 12 | 12 | | SECTION 2. Subchapter B, Chapter 393, Finance Code, is |
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| 13 | 13 | | amended by adding Section 393.1045 to read as follows: |
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| 14 | 14 | | Sec. 393.1045. LICENSE REQUIRED FOR SERVICES FOR CERTAIN |
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| 15 | 15 | | LOANS. (a) This section applies only to a credit services |
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| 16 | 16 | | organization that obtains, facilitates, or assists a consumer to |
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| 17 | 17 | | obtain an extension of consumer credit in which any of the following |
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| 18 | 18 | | is given as security for or in connection with the debt: |
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| 19 | 19 | | (1) a motor vehicle certificate of title, except as |
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| 20 | 20 | | provided by Subsection (f); |
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| 21 | 21 | | (2) the consumer's personal check to be cashed or |
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| 22 | 22 | | deposited at a designated future date; or |
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| 23 | 23 | | (3) an authorization to debit at a designated future |
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| 24 | 24 | | date a deposit account maintained by the consumer. |
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| 25 | 25 | | (b) A credit services organization must be licensed by the |
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| 26 | 26 | | Office of Consumer Credit Commissioner as provided by this section |
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| 27 | 27 | | to engage in an activity described by Subsection (a). |
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| 28 | 28 | | (c) The Office of Consumer Credit Commissioner shall: |
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| 29 | 29 | | (1) establish disclosure requirements for licensed |
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| 30 | 30 | | credit services organizations in addition to the requirements of |
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| 31 | 31 | | Section 393.105; |
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| 32 | 32 | | (2) adopt policies prohibiting licensed credit |
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| 33 | 33 | | services organizations from harassing and intimidating consumers |
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| 34 | 34 | | in connection with an extension of consumer credit; |
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| 35 | 35 | | (3) establish a data collection mechanism to enable |
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| 36 | 36 | | the office to appropriately monitor compliance of credit services |
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| 37 | 37 | | organizations with this section, Section 393.105, and Subchapters |
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| 38 | 38 | | C, D, and E; and |
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| 39 | 39 | | (4) enter into a memorandum of understanding with the |
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| 40 | 40 | | office of the attorney general to investigate credit services |
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| 41 | 41 | | organizations for potential violations of a requirement of this |
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| 42 | 42 | | section or a rule adopted under this section. |
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| 43 | 43 | | (d) The Finance Commission of Texas shall adopt rules as |
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| 44 | 44 | | necessary: |
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| 45 | 45 | | (1) to establish procedures for issuing, renewing, and |
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| 46 | 46 | | enforcing a license under this section; |
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| 47 | 47 | | (2) to set a maximum fee for the services to be |
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| 48 | 48 | | performed by a credit services organization in connection with an |
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| 49 | 49 | | activity described by Subsection (a); and |
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| 50 | 50 | | (3) for the administration of this section. |
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| 51 | 51 | | (e) A credit services organization may not evade the |
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| 52 | 52 | | application of this section or a rule adopted under this section by |
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| 53 | 53 | | use of any device, subterfuge, or pretense. Characterization of a |
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| 54 | 54 | | required fee as a purchase of a good or service in connection with |
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| 55 | 55 | | an extension of credit to which this section applies is a device, |
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| 56 | 56 | | subterfuge, or pretense for the purposes of this section. |
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| 57 | 57 | | (f) Subsection (a)(1) does not apply to an extension of |
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| 58 | 58 | | consumer credit for the express purpose of financing the purchase |
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| 59 | 59 | | of a motor vehicle used as security for the debt. |
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| 60 | 60 | | SECTION 3. Not later than October 1, 2009, the Finance |
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| 61 | 61 | | Commission of Texas shall adopt rules required by Section 393.1045, |
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| 62 | 62 | | Finance Code, as added by this Act. |
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| 63 | 63 | | SECTION 4. A credit services organization is not required |
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| 64 | 64 | | to obtain a license under Section 393.1045, Finance Code, as added |
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| 65 | 65 | | by this Act, until January 1, 2010. |
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| 66 | 66 | | SECTION 5. This Act takes effect September 1, 2009. |
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