Texas House Bill HB1020

Texas 2015 - 84th Regular

Caption

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; providing civil and administrative penalties.

Impact

The impact of HB 1020 on state law is significant, as it fortifies regulatory frameworks for consumer credit organizations. The bill introduces new rules regarding the fees that can be charged, ensuring that consumers are not overcharged and are aware of the total costs involved with credit services. By governing the contracts between credit access businesses and consumers, the legislation aims to prevent deceptive practices and ensure that consumers can access necessary credit without facing unfair conditions.

Summary

House Bill 1020 aims to regulate credit services organizations in Texas and establish measures around extensions of consumer credit, particularly regarding deferred presentment transactions and motor vehicle title loans. A notable provision of the bill is the establishment of a database for tracking deferred presentment transactions, which allows for improved monitoring and enforcement of compliance by credit access businesses. The bill mandates that data from transactions must be submitted to this database, which enhances transparency and consumer protection in the extension of credit services.

Contention

As with many regulations on financial services, there are points of contention concerning HB 1020. Advocates argue that it provides essential protections for consumers, especially vulnerable populations who may rely on credit services for day-to-day expenses. Critics, however, may argue that additional regulations could place undue burden on credit service providers, potentially limiting access to necessary funds for individuals in need. Balancing consumer protection with the operational capabilities of these organizations will be central to discussions around the bill.