Texas 2015 - 84th Regular

Texas House Bill HB3047

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

Impact

The implications of HB3047 are multifaceted. By implementing a database system for monitoring deferred presentment transactions, the bill aims to prevent potential fraud and abuse in the consumer credit sector. This regulatory enhancement is expected to lead to greater compliance among credit services organizations, potentially benefiting consumers by fostering a more transparent borrowing environment. However, this could also mean increased operational responsibilities and costs for the credit services industry, which may be passed onto consumers in the form of higher fees or stricter lending criteria.

Summary

House Bill 3047 proposes amendments to the Finance Code, specifically concerning credit services organizations and the facilitation of consumer credit extensions. Among the key changes, the bill establishes a data collection system that requires credit access businesses to report certain information regarding deferred presentment transactions, thus enhancing regulatory oversight. Moreover, it seeks to elevate the penalties for violations related to consumer credit extensions, which indicates a significant move towards tightening control over credit services organizations and ensuring protection for consumers engaging in such transactions.

Contention

Notably, the discussion surrounding HB3047 has highlighted concerns regarding the balance between consumer protection and business freedom. Proponents argue that the increased regulatory framework is necessary to safeguard consumers from predatory lending practices, while critics contend that the bill may disproportionately impact smaller credit services organizations unable to absorb the costs of compliance. The debate also touches upon the administrative burden that could arise from the requirement to submit extensive data to the new system, which opponents say could deter competition in the consumer credit market.

Companion Bills

No companion bills found.

Similar Bills

TX HB768

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX HB297

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX HB206

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX HB2808

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX HB1134

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX HB1258

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX HB242

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX SB121

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