Texas 2011 - 82nd Regular

Texas House Bill HB3139 Compare Versions

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1	1	82R6238 CLG-F
2	2	By: Anchia H.B. No. 3139
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to fees paid to the consumer credit commissioner and to
8	8	fees and interest charged in connection with consumer credit
9	9	transactions.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 14.107(b), Finance Code, is amended to
12	12	read as follows:
13	13	(b) The finance commission by rule shall set the fees for
14	14	licensing and examination under Chapter 342, 345, 347, 348, 351, or
15	15	371 at amounts or rates necessary to recover the costs of
16	16	administering those chapters. The rules may provide that the
17	17	amount of a fee charged to a license holder is based on the volume of
18	18	the license holder's regulated business and other key factors. The
19	19	commissioner may provide for collection of a single annual fee from
20	20	a person licensed under Chapter 342, 345, 347, 348, 351, or 371 to
21	21	include amounts due for both licensing and examination.
22	22	SECTION 2. Section 303.009(d), Finance Code, is amended to
23	23	read as follows:
24	24	(d) For an open-end account credit agreement that provides
25	25	for credit card transactions on which a merchant discount is not
26	26	imposed or received by the creditor or a retail charge agreement
27	27	under Chapter 345 without a merchant discount, the ceiling is 21
28	28	percent a year.
29	29	SECTION 3. Section 303.203(a), Finance Code, is amended to
30	30	read as follows:
31	31	(a) A lender may, at the time or after a loan is made, offer
32	32	to sell to the borrower and finance in a [the] loan contract subject
33	33	to this subtitle a charge for an automobile club membership.
34	34	SECTION 4. Section 342.004(b), Finance Code, is amended to
35	35	read as follows:
36	36	(b) A loan providing for an effective [a] rate of interest
37	37	that is 10 percent a year or less is not subject to this chapter.
38	38	SECTION 5. Section 342.502(d), Finance Code, is amended to
39	39	read as follows:
40	40	(d) On a loan subject to this chapter a lender may assess and
41	41	collect a fee that does not exceed the amount prescribed by Section
42	42	3.506, Business & Commerce Code [Chapter 617, Acts of the 68th
43	43	Legislature, Regular Session, 1983 (Article 9022, Vernon's Texas
44	44	Civil Statutes)], for the return by a depository institution of a
45	45	dishonored check, negotiable order of withdrawal, or share draft
46	46	offered in full or partial payment of a loan.
47	47	SECTION 6. The heading to Subchapter D, Chapter 345,
48	48	Finance Code, is amended to read as follows:
49	49	SUBCHAPTER D. ALTERNATE FINANCE CHARGE [MARKET COMPETITIVE RATE]
50	50	CEILING
51	51	SECTION 7. Section 345.155, Finance Code, is amended to
52	52	read as follows:
53	53	Sec. 345.155. TIME PRICE DIFFERENTIAL COMPUTATION AND
54	54	AMOUNT. (a) A time price differential authorized under Subchapter
55	55	C [this subchapter] shall be computed using the average daily
56	56	balance method.
57	57	(b) If the amount of a time price differential otherwise
58	58	authorized under Subchapter C [this subchapter] for a billing cycle
59	59	in which a balance is due is less than 75 cents a month, the holder
60	60	may charge an amount that does not exceed 75 cents a month.
61	61	SECTION 8. Section 345.157(a), Finance Code, is amended to
62	62	read as follows:
63	63	(a) A retail charge agreement [that implements the market
64	64	competitive rate ceiling] may provide for the payment of:
65	65	(1) a delinquency charge on each installment that is
66	66	in default for a period that is longer than 21 days;
67	67	(2) an attorney's reasonable fee if the agreement is
68	68	referred for collection to an attorney who is not a salaried
69	69	employee of the holder; and
70	70	(3) court costs and disbursements.
71	71	SECTION 9. Section 345.351(a), Finance Code, is amended to
72	72	read as follows:
73	73	(a) A holder who is not an authorized lender under Chapter
74	74	342 or a credit union shall:
75	75	(1) register with the Office of Consumer Credit
76	76	Commissioner; and
77	77	(2) pay an annual fee in an amount determined as
78	78	provided by Section 14.107 [of $10] for each location at which a
79	79	retail installment transaction is originated, serviced, or
80	80	collected.
81	81	SECTION 10. Section 346.103(a), Finance Code, is amended to
82	82	read as follows:
83	83	(a) The following fees may be charged to or collected from a
84	84	customer in connection with an account under this chapter:
85	85	(1) an annual fee not to exceed:
86	86	(A) $50 a year on an account with a credit limit
87	87	of $5,000 or less;
88	88	(B) $75 a year on an account with a credit limit
89	89	exceeding $5,000 but not exceeding $25,000; and
90	90	(C) $125 a year on an account with a credit limit
91	91	exceeding $25,000;
92	92	(2) a late charge not to exceed the lesser of $15 or
93	93	five percent of the payment due after the payment continues unpaid
94	94	for 10 days or more after the date the payment is due, including
95	95	Sundays and holidays;
96	96	(3) a cash advance charge not to exceed the greater of
97	97	$2 or two percent of the cash advance;
98	98	(4) a returned check fee as provided for a loan
99	99	agreement under Chapter 342 by Section 3.506, Business & Commerce
100	100	Code [Section 1, Chapter 617, Acts of the 68th Legislature, Regular
101	101	Session, 1983 (Article 9022, Vernon's Texas Civil Statutes)]; and
102	102	(5) a fee for exceeding a credit limit not to exceed
103	103	the greater of $15 or five percent of the amount by which the credit
104	104	limit is exceeded.
105	105	SECTION 11. Section 347.451(a), Finance Code, is amended to
106	106	read as follows:
107	107	(a) A creditor who is not an authorized lender under Chapter
108	108	342 or a credit union shall:
109	109	(1) register with the Office of Consumer Credit
110	110	Commissioner; and
111	111	(2) pay an annual fee in an amount determined as
112	112	provided by Section 14.107 [of $15] for each location at which a
113	113	credit transaction is originated, serviced, or collected.
114	114	SECTION 12. Section 371.106(a), Finance Code, is amended to
115	115	read as follows:
116	116	(a) Not later than December 1, a pawnshop employee license
117	117	holder shall pay to the commissioner an annual fee in an amount
118	118	determined as provided by Section 14.107 [of $15] for the year
119	119	beginning the next January 1.
120	120	SECTION 13. Section 345.153, Finance Code, is repealed.
121	121	SECTION 14. This Act takes effect September 1, 2011.