Texas 2015 - 84th Regular

Texas House Bill HB3047 Compare Versions

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

Old	New	Differences
1	1	84R3829 CLG-F
2	2	By: Craddick H.B. No. 3047
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to credit services organizations and extensions of
8	8	consumer credit facilitated by credit services organizations;
9	9	increasing 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 342.607 to read as follows:
13	13	Sec. 342.607. DEFERRED PRESENTMENT TRANSACTION DATA
14	14	COLLECTION SYSTEM. (a) In this section, "credit access business"
15	15	has the meaning assigned by Section 393.001(2-a).
16	16	(b) The commissioner shall establish and implement a
17	17	database for the compilation of information relating to deferred
18	18	presentment transactions that allows the commissioner or persons
19	19	who offer, service, or broker the transactions, including a credit
20	20	access business, to determine:
21	21	(1) whether an individual seeking to enter into a
22	22	deferred presentment transaction with the person has any
23	23	outstanding deferred presentment transactions entered into with
24	24	other persons;
25	25	(2) the total number of outstanding deferred
26	26	presentment transactions entered into by the individual described
27	27	by Subdivision (1) with other persons; and
28	28	(3) whether the person is in compliance with this
29	29	section and other provisions of law governing deferred presentment
30	30	transactions.
31	31	(c) The commissioner shall contract with a third-party
32	32	vendor to operate the database required by this section. In
33	33	selecting the vendor, the commissioner shall:
34	34	(1) consider the vendor's ability to meet the
35	35	requirements of this section;
36	36	(2) consider the cost of the vendor's services;
37	37	(3) give strong consideration to the vendor's ability
38	38	to prevent fraud, abuse, and other unlawful activity associated
39	39	with deferred presentment transactions;
40	40	(4) give strong consideration to whether the vendor
41	41	operates a similar database in another state; and
42	42	(5) give strong consideration to whether the vendor's
43	43	operation of the database would facilitate the enforcement of laws
44	44	governing deferred presentment transactions and the persons who
45	45	offer, service, or broker those transactions.
46	46	(d) The commissioner shall ensure that:
47	47	(1) the third-party vendor operating the database
48	48	operates the database in accordance with this section and rules
49	49	adopted by the finance commission under this section; and
50	50	(2) the database established under this section:
51	51	(A) allows persons required to submit
52	52	information to the database to submit and access the required
53	53	information from any location in this state;
54	54	(B) provides real-time access by the
55	55	commissioner to information contained in the database from any
56	56	location in this state; and
57	57	(C) contains safeguards to ensure that
58	58	information contained in the database may not be accessed by an
59	59	unauthorized person.
60	60	(e) A person who offers, services, or brokers a deferred
61	61	presentment transaction, including a credit access business, shall
62	62	submit to the database at the time the transaction is entered into
63	63	data relating to the transaction that the commissioner, by rule of
64	64	the finance commission, determines necessary.
65	65	(f) Information in the database is confidential and is not
66	66	subject to disclosure under Chapter 552, Government Code.
67	67	(g) The finance commission shall adopt rules as necessary to
68	68	implement this section, including rules:
69	69	(1) relating to the form and content of information to
70	70	be submitted to the database;
71	71	(2) prescribing a fee to be paid by persons required to
72	72	submit information to be included in the database under Subsection
73	73	(e); and
74	74	(3) establishing requirements for the retention,
75	75	archiving, and deletion of information entered into or stored in
76	76	the database.
77	77	(h) The third-party vendor shall charge a person who offers,
78	78	services, or brokers a deferred presentment transaction a fee to
79	79	access or use the database under this section. The fee may be
80	80	charged on a per-transaction basis and may be used only to pay the
81	81	costs associated with the maintenance of the database under this
82	82	section. The finance commission by rule must approve the amount of
83	83	the fee, which may not exceed $1 per deferred presentment
84	84	transaction.
85	85	(i) A person who ceases to offer, service, or broker
86	86	deferred presentment transactions shall continue to submit
87	87	information required by this section for any transactions that are
88	88	outstanding and with respect to which the person continues
89	89	collection efforts. Not later than the 10th day after the date the
90	90	person ceases to offer deferred presentment transactions, the
91	91	person shall submit to the commissioner for approval a plan for
92	92	continuing compliance with this section. The commissioner shall
93	93	promptly approve or disapprove the plan. The commissioner may
94	94	require a person to whom this subsection applies to submit a new or
95	95	modified plan.
96	96	SECTION 2. Section 393.001, Finance Code, is amended by
97	97	amending Subdivision (3) and adding Subdivisions (2-a), (3-a), (5),
98	98	(6), (7), (8), (9), and (10) to read as follows:
99	99	(2-a) "Credit access business" means a credit services
100	100	organization that obtains for a consumer or assists a consumer in
101	101	obtaining an extension of consumer credit.
102	102	(3) "Credit services organization" means a person who
103	103	provides, or represents that the person can or will provide, for the
104	104	payment of valuable consideration any of the following services
105	105	with respect to the extension of consumer credit by others:
106	106	(A) improving a consumer's credit history or
107	107	rating;
108	108	(B) obtaining an extension of consumer credit for
109	109	a consumer in the form of a single-payment deferred presentment
110	110	transaction, a multiple-payment deferred presentment transaction,
111	111	a single-payment motor vehicle title loan, or a multiple-payment
112	112	motor vehicle title loan; or
113	113	(C) providing advice or assistance to a consumer
114	114	with regard to Paragraph (A) or (B).
115	115	(3-a) "Deferred presentment transaction" means a
116	116	single-payment or multiple-payment transaction defined as a
117	117	deferred presentment transaction by Section 341.001 in connection
118	118	with which the consumer is not required to provide real or personal
119	119	property as security.
120	120	(5) "Motor vehicle title loan" means a single-payment
121	121	or multiple-payment loan in which an unencumbered motor vehicle is
122	122	given as the only security for the loan. The term does not include a
123	123	retail installment transaction under Chapter 348 or another loan
124	124	made to finance the purchase of a motor vehicle.
125	125	(6) "Multiple-payment deferred presentment
126	126	transaction" means a deferred presentment transaction that is not a
127	127	single-payment deferred presentment transaction.
128	128	(7) "Multiple-payment motor vehicle title loan" means
129	129	a motor vehicle title loan that is not a single-payment motor
130	130	vehicle title loan.
131	131	(8) "Refinance" means a rollover, renewal, or other
132	132	type of transaction in which all or a portion of the principal,
133	133	fees, or interest due under an outstanding extension of consumer
134	134	credit becomes due on a later date. The term includes a new
135	135	extension of consumer credit that:
136	136	(A) consists of debt arising from principal,
137	137	fees, or interest that was not paid in full under an outstanding or
138	138	previous extension of consumer credit; or
139	139	(B) is made on or before the seventh day after the
140	140	date a previous extension of consumer credit that a credit access
141	141	business obtained for a consumer or assisted a consumer in
142	142	obtaining was paid in full.
143	143	(9) "Single-payment deferred presentment transaction"
144	144	means a deferred presentment transaction for which the entire cash
145	145	advance, interest, and fees are required under the terms of the
146	146	transaction to be payable in a single payment.
147	147	(10) "Single-payment motor vehicle title loan" means a
148	148	motor vehicle title loan for which the entire principal, interest,
149	149	and fees are required under the terms of the loan to be payable in a
150	150	single payment.
151	151	SECTION 3. Subchapter A, Chapter 393, Finance Code, is
152	152	amended by adding Section 393.004 to read as follows:
153	153	Sec. 393.004. EFFECT ON MUNICIPAL ORDINANCES. (a) This
154	154	chapter does not preempt a municipal ordinance regulating a credit
155	155	access business or any form of an extension of consumer credit that
156	156	a credit access business is authorized to obtain for a consumer or
157	157	assist a consumer in obtaining as provided by Section 393.308.
158	158	(b) If a municipal ordinance described by Subsection (a)
159	159	conflicts with a provision of this chapter regulating a credit
160	160	access business or an extension of consumer credit described by
161	161	Subsection (a), the more stringent regulation controls to the
162	162	extent of the conflict.
163	163	SECTION 4. Section 393.201(c), Finance Code, is amended to
164	164	read as follows:
165	165	(c) A contract with a credit access business[, as defined by
166	166	Section 393.601,] for the performance of services described by
167	167	Section 393.602(a) must, in addition to the requirements of
168	168	Subsection (b) and Section 393.302:
169	169	(1) contain a statement that there is no prepayment
170	170	penalty;
171	171	(2) contain a statement that a credit access business
172	172	must comply with Chapter 392 and the federal Fair Debt Collection
173	173	Practices Act (15 U.S.C. Section 1692 et seq.) with respect to an
174	174	extension of consumer credit [described by Section 393.602(a)];
175	175	(3) contain a statement that a person may not threaten
176	176	or pursue criminal charges against a consumer related to a check or
177	177	other debit authorization provided by the consumer as security for
178	178	a transaction in the absence of forgery, fraud, theft, or other
179	179	criminal conduct;
180	180	(4) contain a statement that a credit access business
181	181	must comply, to the extent applicable, with 10 U.S.C. Section 987
182	182	and any regulations adopted under that law with respect to an
183	183	extension of consumer credit [described by Section 393.602(a)];
184	184	(5) disclose to the consumer:
185	185	(A) the lender from whom the extension of
186	186	consumer credit is obtained;
187	187	(B) the interest paid or to be paid to the lender;
188	188	and
189	189	(C) the specific fees that will be paid to the
190	190	credit access business for the business's services; and
191	191	(6) contain the name and address of the Office of
192	192	Consumer Credit Commissioner and the telephone number of the
193	193	office's consumer helpline.
194	194	SECTION 5. Section 393.203, Finance Code, is amended to
195	195	read as follows:
196	196	Sec. 393.203. ISSUANCE OF CONTRACT AND OTHER DOCUMENTS.
197	197	(a) A credit services organization shall give to the consumer, when
198	198	the document is signed, a copy of the completed contract and any
199	199	other document the organization requires the consumer to sign.
200	200	(b) The contract and other documents provided by a credit
201	201	access business to a consumer under this section in relation to an
202	202	extension of consumer credit must be:
203	203	(1) provided before signing wholly written:
204	204	(A) in English; and
205	205	(B) if the contract negotiations are not
206	206	conducted in English, in the language in which the contract is
207	207	negotiated; and
208	208	(2) before signing, read in their entirety in the
209	209	language in which the contract is negotiated to any consumer who
210	210	cannot read.
211	211	SECTION 6. Section 393.223, Finance Code, is amended by
212	212	amending Subsection (a) and adding Subsection (b-1) to read as
213	213	follows:
214	214	(a) Before performing services described by Section
215	215	393.602(a) [393.221(1)], a credit access business must provide to a
216	216	consumer a written disclosure adopted by rule of the Finance
217	217	Commission of Texas [that discloses the following] in a form
218	218	prescribed by the commission that:
219	219	(1) discloses the interest, fees, and annual
220	220	percentage rates, as applicable, to be charged on a deferred
221	221	presentment transaction or on a motor vehicle title loan, as
222	222	applicable, in comparison to interest, fees, and annual percentage
223	223	rates to be charged on other alternative forms of consumer debt;
224	224	(2) discloses the amount of accumulated fees a
225	225	consumer would incur by renewing or refinancing a deferred
226	226	presentment transaction or motor vehicle title loan that remains
227	227	outstanding for a period of two weeks, one month, two months, and
228	228	three months; [and]
229	229	(3) provides information regarding the typical
230	230	pattern of repayment of deferred presentment transactions and motor
231	231	vehicle title loans; and
232	232	(4) references nonprofit agencies that provide
233	233	financial education and training or cash assistance to borrowers.
234	234	(b-1) The disclosure and notice required by this section
235	235	must be:
236	236	(1) available in English and Spanish at each location
237	237	at which the credit access business performs services described by
238	238	Section 393.602(a); and
239	239	(2) provided to a consumer wholly written, and read in
240	240	their entirety at the time provided to any consumer who cannot read,
241	241	in the language in which the contract is negotiated.
242	242	SECTION 7. Subchapter D, Chapter 393, Finance Code, is
243	243	amended by adding Section 393.308 to read as follows:
244	244	Sec. 393.308. PROHIBITION ON OBTAINING CERTAIN EXTENSIONS
245	245	OF CONSUMER CREDIT. A credit services organization may not obtain
246	246	for a consumer or assist a consumer in obtaining an extension of
247	247	consumer credit in any form other than in the form of a
248	248	single-payment deferred presentment transaction, a
249	249	multiple-payment deferred presentment transaction, a
250	250	single-payment motor vehicle title loan, or a multiple-payment
251	251	motor vehicle title loan.
252	252	SECTION 8. Section 393.501, Finance Code, is amended by
253	253	adding Subsection (c) to read as follows:
254	254	(c) Each day of a continuing violation of a provision of
255	255	Subchapter C-1 or G constitutes a separate offense.
256	256	SECTION 9. Section 393.602(a), Finance Code, is amended to
257	257	read as follows:
258	258	(a) This subchapter applies only to a credit services
259	259	organization that obtains for a consumer or assists a consumer in
260	260	obtaining an extension of consumer credit [in the form of:
261	261	[(1) a deferred presentment transaction; or
262	262	[(2) a motor vehicle title loan].
263	263	SECTION 10. Section 393.604(a), Finance Code, is amended to
264	264	read as follows:
265	265	(a) An application for a license under this subchapter must:
266	266	(1) be under oath;
267	267	(2) contain the applicant's name and the street
268	268	address, mailing address, facsimile number, and telephone number of
269	269	the applicant at the location for which the license is sought;
270	270	(3) give the approximate location from which the
271	271	business is to be conducted;
272	272	(4) [(3)] identify the business's principal parties in
273	273	interest;
274	274	(5) [(4)] contain the name, physical address, and
275	275	telephone number of all third-party lender organizations:
276	276	(A) with which the business contracts to provide
277	277	services described by Section 393.602(a); or
278	278	(B) from which the business arranges extensions
279	279	of consumer credit [described by Section 393.602(a)]; and
280	280	(6) [(5)] contain other relevant information that the
281	281	commissioner requires for the findings required under Section
282	282	393.607.
283	283	SECTION 11. Section 393.620, Finance Code, is amended to
284	284	read as follows:
285	285	Sec. 393.620. TRANSFER OR ASSIGNMENT OF LICENSE PROHIBITED.
286	286	A license may not be transferred or assigned [only with the approval
287	287	of the commissioner].
288	288	SECTION 12. Sections 393.622(a) and (b), Finance Code, are
289	289	amended to read as follows:
290	290	(a) The finance commission may:
291	291	(1) adopt rules necessary to enforce and administer
292	292	this subchapter;
293	293	(2) adopt rules with respect to the quarterly
294	294	reporting by a credit access business licensed under this
295	295	subchapter of summary business information relating to extensions
296	296	of consumer credit the business obtained for a consumer or assisted
297	297	a consumer in obtaining [described by Section 393.602(a)]; and
298	298	(3) adopt rules with respect to periodic examination
299	299	by the office relating to extensions of consumer credit the
300	300	business obtained for a consumer or assisted a consumer in
301	301	obtaining [described by Section 393.602(a)], including rules
302	302	related to charges for defraying the reasonable cost of conducting
303	303	the examinations.
304	304	(b) The finance commission may adopt rules under this
305	305	section to allow the commissioner to review, as part of a periodic
306	306	examination, any relevant contracts between the credit access
307	307	business and the third-party lender organizations with which the
308	308	credit access business contracts to provide services described by
309	309	Section 393.602(a) or from which the business arranges extensions
310	310	of consumer credit [described by Section 393.602(a)]. A contract
311	311	or information obtained by the commissioner under this section is
312	312	considered proprietary and confidential to the respective parties
313	313	to the contract, and is not subject to disclosure under Chapter 552,
314	314	Government Code.
315	315	SECTION 13. Sections 393.625, 393.626, and 393.627, Finance
316	316	Code, are amended to read as follows:
317	317	Sec. 393.625. MILITARY BORROWERS. An extension of consumer
318	318	credit [described by Section 393.602(a)] that is obtained by a
319	319	credit access business for a member of the United States military or
320	320	a dependent of a member of the United States military or that the
321	321	business assisted that person in obtaining must comply with 10
322	322	U.S.C. Section 987 and any regulations adopted under that law, to
323	323	the extent applicable.
324	324	Sec. 393.626. DEBT COLLECTION PRACTICES. A violation of
325	325	Chapter 392 by a credit access business with respect to obtaining
326	326	for a consumer or assisting a consumer in obtaining an extension of
327	327	consumer credit [described by Section 393.602(a)] constitutes a
328	328	violation of this subchapter.
329	329	Sec. 393.627. QUARTERLY REPORT TO COMMISSIONER. A credit
330	330	access business shall file a quarterly report with the commissioner
331	331	on a form prescribed by the commissioner that provides the
332	332	following information relating to extensions of consumer credit
333	333	[described by Section 393.602(a)] during the preceding quarter:
334	334	(1) the number of consumers for whom the business
335	335	obtained or assisted in obtaining those extensions of consumer
336	336	credit;
337	337	(2) the number of those extensions of consumer credit
338	338	obtained by the business or that the business assisted consumers in
339	339	obtaining;
340	340	(3) the number of refinancing transactions of the
341	341	extensions of consumer credit described by Subdivision (2);
342	342	(4) the number of consumers refinancing the extensions
343	343	of consumer credit described by Subdivision (2);
344	344	(5) the number of consumers refinancing more than once
345	345	the extensions of consumer credit described by Subdivision (2);
346	346	(6) the average amount of the extensions of consumer
347	347	credit described by Subdivision (2);
348	348	(7) the total amount of fees charged by the business
349	349	for the activities described by Subdivision (1);
350	350	(8) the number of vehicles surrendered or repossessed
351	351	under the terms of an extension of consumer credit in the form of a
352	352	motor vehicle title loan obtained by the business or that the
353	353	business assisted a consumer in obtaining;
354	354	(9) the mean, median, and mode of the number of
355	355	extensions of consumer credit obtained by consumers as a result of
356	356	entering into the extensions of consumer credit described by
357	357	Subdivision (2); and
358	358	(10) any related information the commissioner
359	359	determines necessary.
360	360	SECTION 14. Subchapter G, Chapter 393, Finance Code, is
361	361	amended by adding Sections 393.629 through 393.637 to read as
362	362	follows:
363	363	Sec. 393.629. GENERAL LIMITATIONS ON EXTENSIONS OF CONSUMER
364	364	CREDIT; PAYMENT METHOD. (a) The provisions of this chapter
365	365	applicable to a credit access business apply to any consumer
366	366	physically located in this state at the time the extension of
367	367	consumer credit is made, regardless of whether the extension of
368	368	consumer credit was made in person in this state.
369	369	(b) A credit access business shall accept a payment made in
370	370	cash or by electronic transfer, cashier's check, teller's check, or
371	371	money order offered by the consumer or another party, to retire or
372	372	otherwise pay down debt incurred under an extension of consumer
373	373	credit that a credit access business obtained for a consumer or
374	374	assisted a consumer in obtaining under this chapter.
375	375	Sec. 393.630. ESTABLISHMENT OF INCOME. A credit access
376	376	business must require documentation to establish a consumer's
377	377	income for purposes of this subchapter. The only acceptable forms
378	378	of documentation are paper, facsimile, or electronic copies of:
379	379	(1) a payroll document;
380	380	(2) a paycheck;
381	381	(3) a bank, credit union, debit card, or other account
382	382	statement;
383	383	(4) a report from a nationally or regionally
384	384	recognized credit and data reporting company;
385	385	(5) Internal Revenue Service Form W-2 from the
386	386	preceding year;
387	387	(6) the income tax return from the preceding tax year;
388	388	or
389	389	(7) a signed letter from the consumer's employer at the
390	390	time the extension of consumer credit is sought.
391	391	Sec. 393.631. SINGLE-PAYMENT DEFERRED PRESENTMENT
392	392	TRANSACTION. (a) The sum of all fees, principal, interest, and
393	393	other amounts due under an extension of consumer credit in the form
394	394	of a single-payment deferred presentment transaction that a credit
395	395	access business obtains for a consumer or assists a consumer in
396	396	obtaining may not exceed 20 percent of the consumer's gross monthly
397	397	income.
398	398	(b) An extension of consumer credit in the form of a
399	399	single-payment deferred presentment transaction that a credit
400	400	access business obtains for a consumer or assists a consumer in
401	401	obtaining may not be refinanced more than three times. An amount
402	402	from each payment of a refinanced deferred presentment transaction
403	403	described by this subsection must be used to repay at least 25
404	404	percent of the principal amount of the original debt.
405	405	Sec. 393.632. MULTIPLE-PAYMENT DEFERRED PRESENTMENT
406	406	TRANSACTION. (a) The sum of all fees, principal, interest, and
407	407	other amounts due under all scheduled payments of an extension of
408	408	consumer credit in the form of a multiple-payment deferred
409	409	presentment transaction that a credit access business obtains for a
410	410	consumer or assists a consumer in obtaining may not exceed 20
411	411	percent of the consumer's gross monthly income.
412	412	(b) An extension of consumer credit in the form of a
413	413	multiple-payment deferred presentment transaction that a credit
414	414	access business obtains for a consumer or assists a consumer in
415	415	obtaining and all fees associated with the debt may not be payable
416	416	by the consumer in more than four installments. An amount from
417	417	each installment payment must be used to repay at least 25 percent
418	418	of the principal amount of the debt.
419	419	(c) An extension of consumer credit in the form of a
420	420	multiple-payment deferred presentment transaction that a credit
421	421	access business obtains for a consumer or assists a consumer in
422	422	obtaining may not be refinanced.
423	423	Sec. 393.633. SINGLE-PAYMENT MOTOR VEHICLE TITLE LOAN.
424	424	(a) The sum of all fees, principal, interest, and other amounts
425	425	due under an extension of consumer credit in the form of a
426	426	single-payment motor vehicle title loan that a credit access
427	427	business obtains for a consumer or assists a consumer in obtaining
428	428	may not exceed the lesser of:
429	429	(1) three percent of the consumer's gross annual
430	430	income; or
431	431	(2) 70 percent of the retail value of the motor vehicle
432	432	securing the debt.
433	433	(b) An extension of consumer credit in the form of a
434	434	single-payment motor vehicle title loan that a credit access
435	435	business obtains for a consumer or assists a consumer in obtaining
436	436	may not be refinanced more than three times. An amount from each
437	437	payment of a refinanced motor vehicle title loan described by this
438	438	subsection must be used to repay at least 25 percent of the
439	439	principal amount of the original debt.
440	440	Sec. 393.634. MULTIPLE-PAYMENT MOTOR VEHICLE TITLE LOAN.
441	441	(a) The sum of all fees, principal, interest, and other amounts
442	442	due under all scheduled payments of an extension of consumer credit
443	443	in the form of a multiple-payment motor vehicle title loan that a
444	444	credit access business obtains for a consumer or assists a consumer
445	445	in obtaining may not exceed the lesser of:
446	446	(1) three percent of the consumer's gross annual
447	447	income; or
448	448	(2) 70 percent of the retail value of the motor vehicle
449	449	securing the debt.
450	450	(b) An extension of consumer credit in the form of a
451	451	multiple-payment motor vehicle title loan that a credit access
452	452	business obtains for a consumer or assists a consumer in obtaining
453	453	and all fees associated with the debt may not be payable by the
454	454	consumer in more than four installments. An amount from each
455	455	installment payment must be used to repay at least 25 percent of the
456	456	principal amount of the debt.
457	457	(c) An extension of consumer credit in the form of a
458	458	multiple-payment motor vehicle title loan that a credit access
459	459	business obtains for a consumer or assists a consumer in obtaining
460	460	may not be refinanced.
461	461	Sec. 393.635. REFINANCES. (a) Any refinance of an
462	462	extension of consumer credit that a credit access business obtains
463	463	for a consumer or assists a consumer in obtaining:
464	464	(1) must be authorized under this subchapter;
465	465	(2) must be in the same form as the original extension
466	466	of consumer credit; and
467	467	(3) must meet all the requirements applicable to the
468	468	original extension of consumer credit, including the duration,
469	469	transaction, and applicable income-based or vehicle value-based
470	470	limitations under Section 393.631(a), 393.632(a), 393.633(a), or
471	471	393.634(a).
472	472	(b) For purposes of this section, a single-payment deferred
473	473	presentment transaction, a multiple-payment deferred presentment
474	474	transaction, a single-payment motor vehicle title loan, and a
475	475	multiple-payment motor vehicle title loan are the different forms
476	476	of extensions of consumer credit that a credit access business may
477	477	obtain for a consumer or assist a consumer in obtaining.
478	478	(c) A person may not use a device, subterfuge, or pretense
479	479	to evade the refinance requirements and limitations imposed on a
480	480	credit access business under this subchapter.
481	481	Sec. 393.636. MAINTENANCE OF RECORDS. (a) A credit access
482	482	business shall maintain a complete set of records of all extensions
483	483	of consumer credit obtained for consumers by the business or that
484	484	the business assisted consumers in obtaining. The record
485	485	pertaining to each extension of consumer credit must be retained
486	486	until the third anniversary of the date the extension of consumer
487	487	credit was obtained and must include:
488	488	(1) the name and address of the consumer;
489	489	(2) the principal amount of the cash advance or loan;
490	490	(3) the length of the original term of the extension of
491	491	consumer credit, the number of installments or refinances, if
492	492	applicable, and the length of the term of any refinance;
493	493	(4) the fees charged by the credit access business for
494	494	obtaining for a consumer or assisting the consumer in obtaining the
495	495	extension of consumer credit; and
496	496	(5) the documentation used to establish a consumer's
497	497	income under Section 393.630.
498	498	(b) A credit access business shall retain a copy of each
499	499	written agreement between the business and a consumer pertaining to
500	500	an extension of consumer credit, including any agreement regarding
501	501	refinancing an extension of consumer credit, until the third
502	502	anniversary of the date on which the agreement was entered into.
503	503	(c) A credit access business shall retain a copy of each
504	504	report filed under Section 393.627 until the third anniversary of
505	505	the date on which the report was filed.
506	506	(d) A record described by this section must be available for
507	507	inspection on request by the office during the normal business
508	508	hours of the credit access business.
509	509	Sec. 393.637. RULES. The finance commission shall adopt
510	510	any rules necessary to implement Sections 393.629-393.636.
511	511	SECTION 15. The following laws are repealed:
512	512	(1) Section 393.221, Finance Code; and
513	513	(2) Sections 393.601(2), (3), and (5), Finance Code.
514	514	SECTION 16. The consumer credit commissioner shall
515	515	establish and implement the database under Section 342.607, Finance
516	516	Code, as added by this Act, not later than January 1, 2016, and
517	517	shall prescribe the date by which a person who offers, services, or
518	518	brokers a deferred presentment transaction must begin submitting
519	519	data as provided by that section.
520	520	SECTION 17. The changes in law made by this Act apply only
521	521	to an extension of consumer credit made on or after the effective
522	522	date of this Act. An extension of consumer credit made before the
523	523	effective date of this Act is governed by the law in effect on the
524	524	date the extension of consumer credit was made, and the former law
525	525	is continued in effect for that purpose. For purposes of this
526	526	section, a refinance of an extension of consumer credit is
527	527	considered made on the date the extension of consumer credit being
528	528	refinanced was made.
529	529	SECTION 18. (a) The change in law made by this Act to
530	530	Section 393.223, Finance Code, applies only to a disclosure or
531	531	notice provided by a credit access business on or after January 1,
532	532	2016. A disclosure or notice provided by a credit access business
533	533	before January 1, 2016, is governed by Section 393.223, Finance
534	534	Code, as that section existed immediately before the effective date
535	535	of this Act, and that law is continued in effect for that purpose.
536	536	(b) The Finance Commission of Texas shall adopt rules
537	537	prescribing forms under Section 393.223(a), Finance Code, as
538	538	amended by this Act, not later than November 1, 2015.
539	539	SECTION 19. Section 393.636, Finance Code, as added by this
540	540	Act, applies only to a record created on or after the effective date
541	541	of this Act. A record created before the effective date of this Act
542	542	is governed by the law in effect when the record was created, and
543	543	the former law is continued in effect for that purpose.
544	544	SECTION 20. This Act takes effect September 1, 2015.