Texas Senate Bill SB1620

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/8/09
• Voted on by Senate: 4/23/09
• Out of House Committee: 5/12/09
• Voted on by House: 5/26/09
• Governor Action: 6/19/09
• Enrolled: 6/1/09
• Passed: 6/19/09

Caption

Relating to examinations by the consumer credit commissioner with regard to the regulation of property tax lenders and certain other lenders and debt management counselors.

Impact

If enacted, SB1620 will increase the level of oversight regarding property tax lending practices in Texas. The bill mandates that property tax lenders must provide unfettered access to their offices, files, and pertinent records during inspections. This move is intended to establish a more transparent environment in the property tax lending market, which could protect borrowers from predatory lending practices. Furthermore, it empowers regulatory bodies to take necessary action against any lenders found in violation of these laws, enhancing overall accountability within the industry.

Summary

SB1620 proposes amendments to the Texas Finance Code aimed at enhancing the regulation of property tax lenders. The bill introduces sections that empower the commissioner or the commissioner's representative to conduct examinations and investigations of property tax lenders. This includes access to their records and transactions to ensure compliance with existing regulations and to uncover any violations. Specific provisions emphasize the need for cooperation from these lenders during such investigations, with penalties for non-compliance potentially leading to license suspension or revocation.

Contention

Some points of contention surrounding SB1620 may arise from property tax lenders who feel that increased regulation could hinder their operations or lead to reluctance in providing loans due to the intensified scrutiny. Discussion may trace lines between the need for consumer protection versus the potential burden imposed on lenders. Moreover, there may be debates regarding how these regulations will be enforced and the implications for consumers who depend on property tax loans. Advocates for the bill argue that such regulation is essential for safeguarding consumer interests, especially in an era where financial transparency is crucial.

Additional_details

The bill includes provisions for the examination of lenders' net assets by an independent certified public accountant when questions arise about their financial credibility. This ensures that only lenders who meet specific asset requirements continue to operate, thereby reinforcing the financial stability of the lending landscape. Overall, SB1620 marks a significant step towards tighter regulation and consumer protection in the property tax lending sector.