Relating to the licensing and regulation of certain credit services organizations and the regulation of certain extensions of consumer credit obtained by those organizations or with regard to which the organizations provide assistance; providing an administrative penalty.
Impact
If enacted, HB 2594 is set to significantly reshape the landscape of consumer credit in Texas. By formalizing the licensing process, the bill seeks to hold credit access businesses accountable while ensuring that consumers receive crucial information regarding the terms and conditions of the credit extensions they are considering. The legislation would serve as a regulatory safeguard, aiming to reduce predatory practices in the consumer credit market. Furthermore, it introduces administrative penalties for violations, enhancing enforcement against non-compliant entities.
Summary
House Bill 2594 addresses the licensing and regulation of credit services organizations that assist consumers in obtaining certain types of consumer credit, particularly deferred presentment transactions and motor vehicle certificate of title loans. The bill establishes comprehensive guidelines for credit access businesses, aiming to enhance consumer protection by mandating transparency in credit transactions. Key requirements include the prohibition of prepayment penalties, compliance with federal debt collection laws, and full disclosure of interest and fees associated with the extensions of credit offered by these businesses.
Contention
The bill's provisions may be contentious among stakeholders in the financial services industry, particularly regarding the limitations imposed on credit access businesses. While intended to protect consumers, critics may argue that the stringent regulatory framework could hinder the availability of credit options, especially for individuals with limited access to traditional banking services. Balancing consumer protection with the need for accessible financial services will be a critical discussion point as the bill progresses through the legislative process.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to a restriction on total charges charged for extensions of consumer credit that a credit services organization obtains for a consumer or assists a consumer in obtaining.
Relating to a restriction on total charges charged for certain extensions of consumer credit that are facilitated by credit access businesses and entered into by consumers residing in disaster areas.
Relating to the regulation and voluntary licensing of reroofing contractors by the Texas Department of Licensing and Regulation; providing administrative and civil penalties; authorizing fees.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the regulation of certain health professionals and health facilities; providing civil and administrative penalties; creating a criminal offense.