81R10450 CLG-D
By: Marquez H.B. No. 3744
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of credit services organizations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter B, Chapter 393,
Finance Code, is amended to read as follows:
SUBCHAPTER B. REGISTRATION, LICENSING, AND DISCLOSURE STATEMENTS
SECTION 2. Subchapter B, Chapter 393, Finance Code, is
amended by adding Section 393.1045 to read as follows:
Sec. 393.1045. LICENSE REQUIRED FOR SERVICES FOR CERTAIN
LOANS. (a) This section applies only to a credit services
organization that obtains, facilitates, or assists a consumer to
obtain an extension of consumer credit in which any of the following
is given as security for or in connection with the debt:
(1) a motor vehicle certificate of title, except as
provided by Subsection (f);
(2) the consumer's personal check to be cashed or
deposited at a designated future date; or
(3) an authorization to debit at a designated future
date a deposit account maintained by the consumer.
(b) A credit services organization must be licensed by the
Office of Consumer Credit Commissioner as provided by this section
to engage in an activity described by Subsection (a).
(c) The Office of Consumer Credit Commissioner shall:
(1) establish disclosure requirements for licensed
credit services organizations in addition to the requirements of
Section 393.105;
(2) adopt policies prohibiting licensed credit
services organizations from harassing and intimidating consumers
in connection with an extension of consumer credit;
(3) establish a data collection mechanism to enable
the office to appropriately monitor compliance of credit services
organizations with this section, Section 393.105, and Subchapters
C, D, and E; and
(4) enter into a memorandum of understanding with the
office of the attorney general to investigate credit services
organizations for potential violations of a requirement of this
section or a rule adopted under this section.
(d) The Finance Commission of Texas shall adopt rules as
necessary:
(1) to establish procedures for issuing, renewing, and
enforcing a license under this section;
(2) to set a maximum fee for the services to be
performed by a credit services organization in connection with an
activity described by Subsection (a); and
(3) for the administration of this section.
(e) A credit services organization may not evade the
application of this section or a rule adopted under this section by
use of any device, subterfuge, or pretense. Characterization of a
required fee as a purchase of a good or service in connection with
an extension of credit to which this section applies is a device,
subterfuge, or pretense for the purposes of this section.
(f) Subsection (a)(1) does not apply to an extension of
consumer credit for the express purpose of financing the purchase
of a motor vehicle used as security for the debt.
SECTION 3. Not later than October 1, 2009, the Finance
Commission of Texas shall adopt rules required by Section 393.1045,
Finance Code, as added by this Act.
SECTION 4. A credit services organization is not required
to obtain a license under Section 393.1045, Finance Code, as added
by this Act, until January 1, 2010.
SECTION 5. This Act takes effect September 1, 2009.