Texas 2015 - 84th Regular

Texas House Bill HB2803 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R11161 GRM-D
2	2	By: Peña H.B. No. 2803
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to notice requirements for licensed lenders of deferred
8	8	presentment transactions and motor vehicle certificate of title
9	9	loans; adding a provision subject to a criminal penalty.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter M, Chapter 342, Finance Code, is
12	12	amended by adding Section 342.606 to read as follows:
13	13	Sec. 342.606. NOTICE REQUIREMENTS. (a) In this section,
14	14	the term "deferred presentment transaction," as defined by Section
15	15	341.001, is also referred to as a "payday loan."
16	16	(b) A lender that makes a deferred presentment transaction
17	17	shall prominently and conspicuously post at the lender's place of
18	18	business a sign that is at least 11 inches by 17 inches in size,
19	19	stating in letters at least one inch high: "YOU MAY REPORT ANY
20	20	CONCERNS OR COMPLAINTS ABOUT A PERSON THAT MAKES PAYDAY LOANS OR
21	21	AUTO TITLE LOANS TO THE OFFICE OF CONSUMER CREDIT COMMISSIONER BY
22	22	CALLING THE OFFICE'S CONSUMER ASSISTANCE HELP LINE AT
23	23	1-800-538-1579."
24	24	(c) The lender shall post the sign required by Subsection
25	25	(b) in:
26	26	(1) the general waiting area for borrowers at the
27	27	lender's place of business; or
28	28	(2) each room where the lender conducts business with
29	29	a borrower, if the lender's place of business does not have a
30	30	general waiting area.
31	31	(d) On the request of a customer, the lender shall provide
32	32	the complaint information contained in the notice to the customer
33	33	in writing.
34	34	SECTION 2. Chapter 342, Finance Code, is amended by adding
35	35	Subchapter N to read as follows:
36	36	SUBCHAPTER N. MOTOR VEHICLE CERTIFICATE OF TITLE LOANS
37	37	Sec. 342.651. DEFINITIONS. In this subchapter:
38	38	(1) "Lender" means a lender licensed under this
39	39	chapter.
40	40	(2) "Motor vehicle certificate of title loan" means a
41	41	loan in which a motor vehicle certificate of title is given as
42	42	security for a loan. The term is also referred to as an "auto title
43	43	loan."
44	44	Sec. 342.652. INAPPLICABILITY OF SUBCHAPTER. This
45	45	subchapter does not apply to a retail installment transaction under
46	46	Chapter 348 or other loan made to finance the purchase of a motor
47	47	vehicle.
48	48	Sec. 342.653. NOTICE REQUIREMENTS. (a) A lender that makes
49	49	a motor vehicle certificate of title loan shall prominently and
50	50	conspicuously post at the lender's place of business a sign that is
51	51	at least 11 inches by 17 inches in size, stating in letters at least
52	52	one inch high: "YOU MAY REPORT ANY CONCERNS OR COMPLAINTS ABOUT A
53	53	PERSON THAT MAKES PAYDAY LOANS OR AUTO TITLE LOANS TO THE OFFICE OF
54	54	CONSUMER CREDIT COMMISSIONER BY CALLING THE OFFICE'S CONSUMER
55	55	ASSISTANCE HELP LINE AT 1-800-538-1579."
56	56	(b) The lender shall post the sign required by Subsection
57	57	(a) in:
58	58	(1) the general waiting area for borrowers at the
59	59	lender's place of business; or
60	60	(2) in each room where the lender conducts business
61	61	with a borrower, if the lender's place of business does not have a
62	62	general waiting area.
63	63	(c) On the request of a customer, the lender shall provide
64	64	the complaint information contained in the notice to the customer
65	65	in writing.
66	66	SECTION 3. The heading to Subchapter B, Chapter 393,
67	67	Finance Code, is amended to read as follows:
68	68	SUBCHAPTER B. REGISTRATION; [AND] DISCLOSURE STATEMENTS; NOTICES
69	69	SECTION 4. Subchapter B, Chapter 393, Finance Code, is
70	70	amended by adding Section 393.107 to read as follows:
71	71	Sec. 393.107. NOTICE REQUIREMENTS. (a) In this section:
72	72	(1) "Deferred presentment transaction" has the
73	73	meaning assigned by Section 341.001. The term is also referred to
74	74	as a "payday loan."
75	75	(2) "Motor vehicle certificate of title loan" has the
76	76	meaning assigned by Section 342.651. The term is also referred to
77	77	as an "auto title loan."
78	78	(b) This section applies only to a credit services
79	79	organization that obtains or otherwise assists in obtaining for
80	80	consumers an extension of consumer credit in the form of a deferred
81	81	presentment transaction or a motor vehicle certificate of title
82	82	loan. This section does not apply to a retail installment
83	83	transaction under Chapter 348 or other loan made to finance the
84	84	purchase of a motor vehicle.
85	85	(c) A credit services organization shall prominently and
86	86	conspicuously post at the organization's place of business a sign
87	87	that is at least 11 inches by 17 inches in size, stating in letters
88	88	at least one inch high: "YOU MAY REPORT ANY CONCERNS OR COMPLAINTS
89	89	ABOUT A PERSON THAT OBTAINS OR ASSISTS IN OBTAINING PAYDAY LOANS OR
90	90	AUTO TITLE LOANS TO THE OFFICE OF CONSUMER CREDIT COMMISSIONER BY
91	91	CALLING THE OFFICE'S CONSUMER ASSISTANCE HELP LINE AT
92	92	1-800-538-1579."
93	93	(d) The credit services organization shall post the sign
94	94	required by Subsection (c) in:
95	95	(1) the general waiting area for consumers at the
96	96	organization's place of business; or
97	97	(2) in each room where the organization conducts
98	98	business with a consumer, if the organization's place of business
99	99	does not have a general waiting area.
100	100	(e) On the request of a consumer, a credit services
101	101	organization shall provide the complaint information contained in
102	102	the notice to the consumer in writing.
103	103	(f) The Finance Commission of Texas may adopt rules to
104	104	implement this section.
105	105	SECTION 5. This Act takes effect September 1, 2015.