81R1032 DWS-F
By: Shapleigh S.B. No. 244
A BILL TO BE ENTITLED
AN ACT
relating to restrictions on the authority of certain persons to act
as or on behalf of, or associate with, a lender.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 342.008, Finance Code, is amended to
read as follows:
Sec. 342.008. ATTEMPT TO EVADE LAW. (a) A person who is a
party to a deferred presentment transaction may not evade the
application of this subtitle or a rule adopted under this
subchapter by use of any device, subterfuge, or pretense.
Characterization of a required fee as a purchase of a good or
service in connection with a deferred presentment transaction is a
device, subterfuge, or pretense for the purposes of this section.
(b) A person may not make or offer to make a cash advance
under a deferred presentment transaction on behalf of, in
conjunction with, or as an agent, broker, servicer, or collector
for another person unless both persons comply with this subtitle
and rules adopted under Section 342.007 with respect to deferred
presentment transactions. This subsection applies regardless of
whether both persons are subject to regulation under this subtitle
or another law of this state. An agreement made in connection with
a deferred presentment transaction is void to the extent the
agreement waives the application of this subsection or applies the
law of a jurisdiction other than this state to avoid compliance with
this subtitle or rules adopted under Section 342.007 in a
transaction described by this subsection. For the purposes of
Chapter 349, a person who makes or offers to make a cash advance
under a deferred presentment transaction on behalf of, in
conjunction with, or as an agent, broker, servicer, or collector
for another person is considered to contract for interest.
SECTION 2. Subchapter D, Chapter 393, Finance Code, is
amended by adding Section 393.308 to read as follows:
Sec. 393.308. ACTING AS OR ASSOCIATING WITH LENDER. (a) A
credit services organization may not facilitate or assist in
obtaining credit for a consumer if:
(1) the organization is the lender;
(2) the organization or an officer, director, or
employee of the organization is in any way related to the lender or
an officer, director, or employee of the lender;
(3) the lender or the organization is an affiliate of
the other, or the lender and the organization are owned or
controlled by the same holding company;
(4) the organization retains or receives an economic
interest in the loan revenue;
(5) the organization services or collects the loan on
behalf of the lender; or
(6) the organization provides compensation to or
shares resources with the lender.
(b) A credit services organization may not use a scheme,
device, or contrivance to evade the application of this section.
SECTION 3. This Act takes effect September 1, 2009.