Texas Senate Bill SB2131

Texas 2009 - 81st Regular

Caption

Relating to the regulation of credit services organizations.

Impact

The implications of SB2131 on state laws are significant. By establishing licensing requirements, the legislation aims to enhance oversight and accountability of credit services organizations, which have the potential to exploit consumers through high fees or unfair practices. Consequently, the bill seeks to create a more transparent environment for consumers seeking credit by ensuring that they are informed of their rights and the terms of any agreements they enter into with these organizations.

Summary

Senate Bill 2131 aims to regulate credit services organizations in Texas by introducing a licensing requirement for those that facilitate consumer credit secured by various means, such as motor vehicle titles or personal checks. The bill seeks to establish a framework for monitoring and compliance, mandating that these organizations obtain a license from the Office of Consumer Credit Commissioner to operate legally. It is designed to protect consumers from predatory practices by ensuring that these organizations adhere to strict disclosure and operational standards.

Contention

While SB2131 primarily seeks to protect consumers, some stakeholders may view the licensing requirement as an unnecessary burden on credit services organizations, potentially leading to increased operational costs. Opponents may argue that the bill could limit access to credit for underserved populations who rely on these services, particularly if organizations choose to avoid licensing due to the associated costs and regulations. Therefore, the passage of this bill could spark debate among lawmakers regarding the balance between consumer protection and accessibility of financial services.