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.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to a restriction on total charges charged for certain extensions of consumer credit that are facilitated by credit access businesses and entered into by consumers residing in disaster areas.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to a restriction on total charges charged for extensions of consumer credit that a credit services organization obtains for a consumer or assists a consumer in obtaining.
Relating to catalytic converters, including criminal conduct involving catalytic converters; providing an administrative penalty; creating a criminal offense; increasing a criminal penalty; increasing a fee.
Relating to catalytic converters, including criminal conduct involving catalytic converters; providing an administrative penalty; creating a criminal offense; increasing a criminal penalty; increasing a fee.
Relating to certain criminal conduct and organizations that threaten the security of this state and its residents and borders; increasing criminal penalties.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; providing civil and administrative penalties.