By: Gallego H.B. No. 4312
A BILL TO BE ENTITLED
AN ACT
relating to providing protections to consumers of financial
services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 5, Finance Code, is amended by adding
Chapter 390 to read as follows:
CHAPTER 390. GENERAL CONSUMER PROTECTIONS
Sec. 390.001. PREEMPTION. If any provision of this chapter
conflicts with another provision of the Finance Code, this chapter
prevails to the extent of any conflict.
Sec. 390.002. FINDINGS AND PURPOSE. (a) The legislature
finds that everyday consumer retail transactions, while once
simple, are becoming increasingly complex. Consumers should be
able to enter into transactions for goods and services that are
governed by some basic rules that may not altered by artifice.
(b) The purpose of this chapter is to provide general basic
consumer protections for transactions in this state and this
chapter shall be liberally construed to achieve this purpose.
Sec. 390.002. MAXIMUM INTEREST RATE. A consumer is not
required to pay an interest rate for any extension of credit to the
consumer under this code that exceeds nine percent per annum.
Sec. 390.003. CERTAIN INCREASES IN INTEREST RATES. If a
consumer purchases a good under any extension of credit to the
consumer under this code for which there is a stated interest rate
and begins payments, the interest rate for that good may not be
subsequently raised.
Sec. 390.004. LATE FEES. (a) A person making an extension
of credit under this chapter may not increase interest rates
because of a single late payment by a consumer.
(b) No late fee for a payment on an extension of credit under
this code may exceed $5.
(c) No late fee for a payment on an extension of credit under
this code may be levied against a person who is over the age of 65 or
disabled, or who makes an annual gross income that does not exceed
200 percent of the federal poverty level for a family of four.
SECTION 2. This Act takes effect September 1, 2009.