Texas House Bill HB3772

Texas 2009 - 81st Regular

Caption

Relating to the regulation of credit services organizations.

Impact

This bill seeks to improve the registration process for credit services organizations. Under the new provisions, these organizations will be required to register with the Office of Consumer Credit Commissioner prior to conducting business within the state. This change will ensure that organizations are held accountable for compliance with state laws and regulations and must fully disclose any legal issues or complaints related to their business operations. By doing so, the bill aims to protect consumers from potential abuses in the credit services industry.

Summary

House Bill 3772 aims to amend the regulation of credit services organizations in Texas by transferring regulatory responsibilities from the Secretary of State to the Office of Consumer Credit Commissioner. This shift is intended to streamline administrative processes and enhance consumer protection by establishing a dedicated office to oversee credit services. The new structure emphasizes the importance of consumer credit services and the need for a regulatory body that focuses specifically on this area, which is increasingly relevant in today's financial landscape.

Conclusion

Overall, HB3772 represents a significant step toward modernizing the regulation of credit services organizations in Texas. By creating a centralized regulatory body focused on consumer credit, the bill aims to enhance protection for Texas residents against unscrupulous credit practices while promoting transparency and accountability among credit service providers.

Contention

Notably, the bill clarifies the filing fees associated with the registration process, capping them at $100. Critics of the existing system have raised concerns about oversights in consumer protection and the complexities faced by consumers dealing with credit services. By transferring authority to the Office of Consumer Credit Commissioner, the bill attempts to address these concerns and promote a more robust regulatory environment. However, discussions around the bill may bring up worries about the adequacy of resources allocated to the new office and potential impacts on existing businesses.