83R8758 ATP-F
By: Rodriguez S.B. No. 1689
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of credit access businesses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 393.604(a), Finance Code, is amended to
read as follows:
(a) An application for a license under this subchapter must:
(1) be under oath;
(2) give the approximate location from which the
business is to be conducted;
(3) contain [identify] the names, physical addresses,
mailing addresses, and telephone numbers of the business's
principal parties in interest, and the nature and extent of their
interests in the business;
(4) contain the name, physical address, and telephone
number of all third-party lender organizations with which the
business contracts to provide services described by Section
393.602(a) or from which the business arranges extensions of
consumer credit described by Section 393.602(a); and
(5) contain other relevant information that the
commissioner requires for the findings required under Section
393.607.
SECTION 2. Section 393.620, Finance Code, is amended to
read as follows:
Sec. 393.620. TRANSFER OR ASSIGNMENT OF LICENSE
PROHIBITED. A license may not be transferred or assigned [only
with the approval of the commissioner].
SECTION 3. Subchapter G, Chapter 393, Finance Code, is
amended by adding Sections 393.629 and 393.630 to read as follows:
Sec. 393.629. MAINTENANCE OF RECORDS. A credit access
business shall maintain a complete set of records of all extensions
of consumer credit obtained for consumers by the business or that
the business assisted consumers in obtaining. The records must
include:
(1) the name and address of each consumer; and
(2) the principal amount of the advance or loan.
Sec. 393.630. ROLLOVER FEES PROHIBITED. (a) A credit
access business may not charge a fee or other valuable
consideration to obtain for a consumer or assist a consumer in
obtaining an extension of consumer credit in which a deferred
presentment transaction or motor vehicle title loan is being
renewed, rolled over, or otherwise consolidated by a lender.
(b) For purposes of this section, "roll over" means:
(1) to refinance or pay all or part of the finance
charges and cash advance of a deferred presentment transaction with
a new deferred presentment transaction; or
(2) to refinance or pay all or part of the principal
amount and finance charges of a motor vehicle title loan with a new
motor vehicle title loan.
SECTION 4. This Act takes effect September 1, 2013.