83R5492 RWG-F
By: Carona S.B. No. 824
A BILL TO BE ENTITLED
AN ACT
relating to the administrative fee authorized for certain consumer
loans; changing the amount of the fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 342.201(f), Finance Code, is amended to
read as follows:
(f) A loan contract under this subchapter may provide for an
administrative fee in an amount not to exceed five percent of the
total amount financed or $100, whichever is less [$25 for a loan of
more than $1,000 or $20 for a loan of $1,000 or less]. The
administrative fee is considered earned when the loan is made or
refinanced and is not subject to refund. A lender refinancing the
loan may not contract for or receive an administrative fee for the
loan more than once in any 180-day period, except that if the loan
has an interest charge authorized by Subsection (e) the lender may
not contract for or receive the administrative fee more than once in
any 365-day period. One dollar of each administrative fee may be
deposited with the comptroller for use in carrying out the finance
commission's responsibilities under Section 11.3055.
SECTION 2. Section 342.201(f), Finance Code, as amended by
this Act, applies to a loan that is made or refinanced on or after
the effective date of this Act. A loan that is made or refinanced
before the effective date of this Act is governed by the law in
effect on the date the loan was made or refinanced, and the former
law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2013.