| 1 | 1 | | 81R1031 DWS-F |
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| 2 | 2 | | By: Shapleigh S.B. No. 243 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the prohibition on participating in the lending of |
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| 8 | 8 | | credit by a credit services organization that assists a borrower in |
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| 9 | 9 | | obtaining the credit. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter D, Chapter 393, Finance Code, is |
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| 12 | 12 | | amended by adding Section 393.308 to read as follows: |
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| 13 | 13 | | Sec. 393.308. ACTING AS OR ASSOCIATING WITH LENDER. (a) A |
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| 14 | 14 | | credit services organization may not facilitate or assist in |
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| 15 | 15 | | obtaining credit for a consumer if: |
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| 16 | 16 | | (1) the organization is the lender; |
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| 17 | 17 | | (2) the organization or an officer, director, or |
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| 18 | 18 | | employee of the organization is in any way related to the lender or |
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| 19 | 19 | | an officer, director, or employee of the lender; |
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| 20 | 20 | | (3) the lender or the organization is an affiliate of |
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| 21 | 21 | | the other, or the lender and the organization are owned or |
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| 22 | 22 | | controlled by the same holding company; |
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| 23 | 23 | | (4) the organization retains or receives an economic |
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| 24 | 24 | | interest in the loan revenue; |
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| 25 | 25 | | (5) the organization services or collects the loan on |
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| 26 | 26 | | behalf of the lender; or |
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| 27 | 27 | | (6) the organization provides compensation to or |
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| 28 | 28 | | shares resources with the lender. |
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| 29 | 29 | | (b) A credit services organization may not use a scheme, |
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| 30 | 30 | | device, or contrivance to evade the application of this section. |
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| 31 | 31 | | SECTION 2. This Act takes effect September 1, 2009. |
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