83R5340 CLG-F
By: Carona S.B. No. 823
A BILL TO BE ENTITLED
AN ACT
relating to authorized acquisition and delinquency charges for
certain consumer loans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 342.252, Finance Code, is amended to
read as follows:
Sec. 342.252. ALTERNATE INTEREST CHARGE. Instead of the
charges authorized by Section 342.201, a loan contract may provide
for:
(1) on a cash advance of less than $30, an acquisition
charge that is not more than $1 for each $5 of the cash advance;
(2) on a cash advance equal to or more than $30 but not
more than $100:
(A) an acquisition charge that is not more than
the amount equal to one-tenth of the amount of the cash advance; and
(B) an installment account handling charge that
is not more than:
(i) $3 a month if the cash advance is not
more than $35;
(ii) $3.50 a month if the cash advance is
more than $35 but not more than $70; or
(iii) $4 a month if the cash advance is more
than $70; or
(3) on a cash advance of more than $100:
(A) an acquisition charge that is not more than
10 percent of the amount of the cash advance [$10]; and
(B) an installment account handling charge that
is not more than the ratio of $4 a month for each $100 of cash
advance.
SECTION 2. Section 342.257, Finance Code, is amended to
read as follows:
Sec. 342.257. DEFAULT CHARGE; DEFERMENT OF PAYMENT. The
provisions of Subchapter E relating to additional interest for
default and additional interest for the deferment of installments
apply to a loan made under this subchapter. Provided, that on a
loan contract in which the cash advance is $100 or more, instead of
additional interest for default under Subchapter E, the contract
may provide for a delinquency charge if any part of an installment
remains unpaid after the 10th day after the date on which the
installment is due, including Sundays and holidays. The
delinquency charge on a loan with a cash advance of $100 or more may
not exceed the greater of $20 [$10] or five cents for each $1 of the
delinquent installment.
SECTION 3. Section 342.259(a), Finance Code, is amended to
read as follows:
(a) Instead of the charges authorized by Sections 342.201
and 342.252, a loan made under this subchapter with a maximum cash
advance computed under Subchapter C, Chapter 341, using a reference
base amount that is more than $100 but not more than $200, may
provide for:
(1) an acquisition charge that is not more than 10
percent of the amount of the cash advance [$10]; and
(2) an installment account handling charge that is not
more than the ratio of $4 a month for each $100 of cash advance.
SECTION 4. The changes in law made by this Act apply only to
a loan made on or after the effective date of this Act. A loan made
before the effective date of this Act is governed by the law in
effect on the date the loan was made, and the former law is
continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2013.