Texas Senate Bill SB2387

Texas 2009 - 81st Regular

Caption

Relating to regulation of certain credit transactions and lenders.

Impact

The bill also modifies the stipulations surrounding retail installment contracts, particularly concerning the ability of retail sellers to advance money to settle obligations on trade-ins and the financing of these payments through installment contracts. By doing so, it potentially facilitates easier access to financing for consumers, enabling them to manage outstanding financial obligations more effectively. The legislative intent is to enhance consumer options in credit transactions while imposing clearer regulations on lenders.

Summary

SB2387 seeks to amend certain provisions of the Texas Finance Code relating to the regulation of credit transactions and lenders. It introduces specific changes to how cash prices are determined in retail transactions, allowing the cash price to be either an amount agreed upon between the buyer and seller or an advertised price that is explicitly stated to be equivalent to the cash price. This amendment aims to clarify and standardize pricing practices in retail sales, which is crucial for consumer transparency and fair trading practices.

Contention

Although there is support for the bill's provisions aimed at improving consumer access to credit, some stakeholders may raise concerns about the implications for lending practices. The balance between facilitating credit for consumers and safeguarding against excessive or predatory lending is a notable point of contention. Critics might argue that the amended provisions could lead to misunderstandings regarding financial obligations or allow lenders to impose unfavorable terms under the guise of consumer convenience.