| 1 | 1 | | By: Gallego H.B. No. 4312 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to providing protections to consumers of financial |
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| 7 | 7 | | services. |
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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. Title 5, Finance Code, is amended by adding |
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| 10 | 10 | | Chapter 390 to read as follows: |
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| 11 | 11 | | CHAPTER 390. GENERAL CONSUMER PROTECTIONS |
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| 12 | 12 | | Sec. 390.001. PREEMPTION. If any provision of this chapter |
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| 13 | 13 | | conflicts with another provision of the Finance Code, this chapter |
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| 14 | 14 | | prevails to the extent of any conflict. |
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| 15 | 15 | | Sec. 390.002. FINDINGS AND PURPOSE. (a) The legislature |
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| 16 | 16 | | finds that everyday consumer retail transactions, while once |
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| 17 | 17 | | simple, are becoming increasingly complex. Consumers should be |
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| 18 | 18 | | able to enter into transactions for goods and services that are |
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| 19 | 19 | | governed by some basic rules that may not altered by artifice. |
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| 20 | 20 | | (b) The purpose of this chapter is to provide general basic |
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| 21 | 21 | | consumer protections for transactions in this state and this |
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| 22 | 22 | | chapter shall be liberally construed to achieve this purpose. |
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| 23 | 23 | | Sec. 390.002. MAXIMUM INTEREST RATE. A consumer is not |
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| 24 | 24 | | required to pay an interest rate for any extension of credit to the |
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| 25 | 25 | | consumer under this code that exceeds nine percent per annum. |
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| 26 | 26 | | Sec. 390.003. CERTAIN INCREASES IN INTEREST RATES. If a |
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| 27 | 27 | | consumer purchases a good under any extension of credit to the |
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| 28 | 28 | | consumer under this code for which there is a stated interest rate |
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| 29 | 29 | | and begins payments, the interest rate for that good may not be |
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| 30 | 30 | | subsequently raised. |
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| 31 | 31 | | Sec. 390.004. LATE FEES. (a) A person making an extension |
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| 32 | 32 | | of credit under this chapter may not increase interest rates |
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| 33 | 33 | | because of a single late payment by a consumer. |
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| 34 | 34 | | (b) No late fee for a payment on an extension of credit under |
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| 35 | 35 | | this code may exceed $5. |
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| 36 | 36 | | (c) No late fee for a payment on an extension of credit under |
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| 37 | 37 | | this code may be levied against a person who is over the age of 65 or |
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| 38 | 38 | | disabled, or who makes an annual gross income that does not exceed |
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| 39 | 39 | | 200 percent of the federal poverty level for a family of four. |
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| 40 | 40 | | SECTION 2. This Act takes effect September 1, 2009. |
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