83R1783 ATP-F
By: Craddick H.B. No. 2019
A BILL TO BE ENTITLED
AN ACT
relating to a limitation on the total charges in connection with
certain extensions of consumer credit facilitated by a credit
services organization.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 393, Finance Code, is
amended by adding Section 393.308 to read as follows:
Sec. 393.308. RESTRICTION ON AMOUNT CHARGED IN CONNECTION
WITH EXTENSION OF CONSUMER CREDIT. Total charges in connection
with an extension of consumer credit that a credit services
organization obtains for a consumer or assists the consumer in
obtaining, including interest, lender charges, and any valuable
consideration received by the credit services organization, may not
exceed the permissible interest and fee and other charges for a
similar type of consumer loan under Subchapter E or F, Chapter 342.
SECTION 2. Section 393.308, Finance Code, as added by this
Act, applies only to an agreement entered into or renewed on or
after September 1, 2013, providing for amounts to be charged in
connection with an extension of consumer credit. An agreement
described by this section that is entered into or renewed before
September 1, 2013, is governed by the law as it existed on the date
the agreement was entered into or renewed, and the former law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2013.