| 1 | 1 | | 81R1032 DWS-F |
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| 2 | 2 | | By: Shapleigh S.B. No. 244 |
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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 restrictions on the authority of certain persons to act |
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| 8 | 8 | | as or on behalf of, or associate with, a lender. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 342.008, Finance Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | Sec. 342.008. ATTEMPT TO EVADE LAW. (a) A person who is a |
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| 13 | 13 | | party to a deferred presentment transaction may not evade the |
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| 14 | 14 | | application of this subtitle or a rule adopted under this |
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| 15 | 15 | | subchapter by use of any device, subterfuge, or pretense. |
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| 16 | 16 | | Characterization of a required fee as a purchase of a good or |
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| 17 | 17 | | service in connection with a deferred presentment transaction is a |
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| 18 | 18 | | device, subterfuge, or pretense for the purposes of this section. |
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| 19 | 19 | | (b) A person may not make or offer to make a cash advance |
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| 20 | 20 | | under a deferred presentment transaction on behalf of, in |
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| 21 | 21 | | conjunction with, or as an agent, broker, servicer, or collector |
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| 22 | 22 | | for another person unless both persons comply with this subtitle |
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| 23 | 23 | | and rules adopted under Section 342.007 with respect to deferred |
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| 24 | 24 | | presentment transactions. This subsection applies regardless of |
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| 25 | 25 | | whether both persons are subject to regulation under this subtitle |
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| 26 | 26 | | or another law of this state. An agreement made in connection with |
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| 27 | 27 | | a deferred presentment transaction is void to the extent the |
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| 28 | 28 | | agreement waives the application of this subsection or applies the |
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| 29 | 29 | | law of a jurisdiction other than this state to avoid compliance with |
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| 30 | 30 | | this subtitle or rules adopted under Section 342.007 in a |
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| 31 | 31 | | transaction described by this subsection. For the purposes of |
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| 32 | 32 | | Chapter 349, a person who makes or offers to make a cash advance |
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| 33 | 33 | | under a deferred presentment transaction on behalf of, in |
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| 34 | 34 | | conjunction with, or as an agent, broker, servicer, or collector |
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| 35 | 35 | | for another person is considered to contract for interest. |
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| 36 | 36 | | SECTION 2. Subchapter D, Chapter 393, Finance Code, is |
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| 37 | 37 | | amended by adding Section 393.308 to read as follows: |
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| 38 | 38 | | Sec. 393.308. ACTING AS OR ASSOCIATING WITH LENDER. (a) A |
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| 39 | 39 | | credit services organization may not facilitate or assist in |
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| 40 | 40 | | obtaining credit for a consumer if: |
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| 41 | 41 | | (1) the organization is the lender; |
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| 42 | 42 | | (2) the organization or an officer, director, or |
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| 43 | 43 | | employee of the organization is in any way related to the lender or |
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| 44 | 44 | | an officer, director, or employee of the lender; |
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| 45 | 45 | | (3) the lender or the organization is an affiliate of |
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| 46 | 46 | | the other, or the lender and the organization are owned or |
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| 47 | 47 | | controlled by the same holding company; |
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| 48 | 48 | | (4) the organization retains or receives an economic |
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| 49 | 49 | | interest in the loan revenue; |
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| 50 | 50 | | (5) the organization services or collects the loan on |
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| 51 | 51 | | behalf of the lender; or |
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| 52 | 52 | | (6) the organization provides compensation to or |
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| 53 | 53 | | shares resources with the lender. |
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| 54 | 54 | | (b) A credit services organization may not use a scheme, |
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| 55 | 55 | | device, or contrivance to evade the application of this section. |
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| 56 | 56 | | SECTION 3. This Act takes effect September 1, 2009. |
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