By: Davis S.B. No. 1714
A BILL TO BE ENTITLED
AN ACT
relating to insufficient funds charges and check or debit
authorization for a deferred presentment transaction.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter G, Chapter 393, Finance Code, is
amended by adding Section 393.631 to read as follows:
Sec. 393.631. INSUFFICIENT FUNDS CHARGE. (a) This section
applies to the presentation for payment of a personal check or
authorization to debit a deposit account exchanged for a cash
advance under a deferred presentment transaction that was obtained
for a consumer by a credit access business or that a credit access
business assisted a consumer in obtaining.
(b) If there are insufficient funds in the account to pay
the check or make the debit on the date the check or authorization
to debit is presented in accordance with the terms of the deferred
presentment transaction, the consumer may not be charged more than
$25 in the aggregate, regardless of how many times presentation is
made for payment on the account.
(c) A credit access business may not present a check or
authorization to debit more than twice without written consent of
the consumer.