By: Turner of Tarrant H.B. No. 3638
A BILL TO BE ENTITLED
AN ACT
relating to reports for credit access businesses required by the
consumer credit commissioner; amending provisions subject to a
criminal penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 393.622(a) and (b), Finance Code, are
amended to read as follows:
(a) The finance commission may:
(1) adopt rules necessary to enforce and administer
this subchapter;
(2) adopt rules with respect to reports of summary
business information required to be submitted [the quarterly
reporting] by a licensed credit access business under Section
393.627 and [licensed under this subchapter of summary business
information relating to extensions of consumer credit described by
Section 393.602(a)]; [and]
(3) adopt rules with respect to periodic examination
by the office relating to extensions of consumer credit the
business obtained for a consumer or assisted a consumer in
obtaining [described by Section 393.602(a)], including rules
related to charges for defraying the reasonable cost of conducting
the examinations.
(b) The finance commission may adopt rules under this
section to allow the commissioner to review, as part of a periodic
examination, any relevant contracts between the credit access
business and the third-party lender organizations with which the
credit access business contracts to provide services [described by
Section 393.602(a)] or from which the business arranges extensions
of consumer credit [described by Section 393.602(a)]. A contract
or information obtained by the commissioner under this section is
considered proprietary and confidential to the respective parties
to the contract, and is not subject to disclosure under Chapter 552,
Government Code.
SECTION 2. Section 393.627, Finance Code, is amended to
read as follows:
Sec. 393.627. REPORTS [QUARTERLY REPORT] TO COMMISSIONER.
(a) A credit access business shall file a quarterly report with the
commissioner on a form prescribed by the commissioner that provides
the following information relating to extensions of consumer credit
[described by Section 393.602(a)] during the preceding quarter:
(1) the number of consumers for whom the business
obtained or assisted in obtaining those extensions of consumer
credit;
(2) the number of those extensions of consumer credit
obtained by the business or that the business assisted consumers in
obtaining;
(3) the number of refinancing transactions of the
extensions of consumer credit described by Subdivision (2);
(4) the number of consumers refinancing the extensions
of consumer credit described by Subdivision (2);
(5) the number of consumers refinancing more than once
the extensions of consumer credit described by Subdivision (2);
(6) the average amount of the extensions of consumer
credit described by Subdivision (2);
(7) the total amount of fees charged by the business
for the activities described by Subdivision (1);
(8) the number of vehicles surrendered or repossessed
under the terms of an extension of consumer credit in the form of a
motor vehicle title loan obtained by the business or that the
business assisted a consumer in obtaining; and
(9) [the mean, median, and mode of the number of
extensions of consumer credit obtained by consumers as a result of
entering into the extensions of consumer credit described by
Subdivision (2); and
[(10)] any related information the commissioner
determines necessary.
(b) A credit access business shall file an annual report
with the commissioner for each licensed location on a form
prescribed by the commissioner that provides the following
information relating to extensions of consumer credit during the
preceding year:
(1) the number of extensions of consumer credit paid
in full or otherwise closed for reduced payoff without a refinance;
(2) the number of refinances of extensions of consumer
credit entered into before the extensions of consumer credit were
paid in full or otherwise closed for a reduced payoff;
(3) the total amount of fees charged by the credit
access business in connection with extensions of consumer credit;
(4) the number of consumers whom the credit access
business assisted in obtaining an extension of consumer credit;
(5) the number of consumers refinancing the extensions
of consumer credit described by Subdivision (2);
(6) the number of consumers refinancing more than once
the extensions of consumer credit described by Subdivision (2);
(7) the total dollar amount of extensions of consumer
credit that the credit access business assisted consumers in
obtaining;
(8) for motor vehicles surrendered or repossessed
under the terms of extensions of consumer credit in the form of
motor vehicle title loans obtained by the business for consumers or
that the business assisted consumers in obtaining:
(A) the median amount of cash advanced under the
extensions of consumer credit;
(B) the total dollar amount of fees collected by
the credit access business from consumers before the surrender or
repossession of the vehicles;
(C) the total dollar amount of fees and other
charges collected by the credit access business related to the
surrender or repossession of the vehicles; and
(D) the total dollar amount returned to borrowers
after the sale of the surrendered or repossessed vehicles; and
(9) any related information the commissioner
determines necessary.
(c) All information submitted by a credit access business to
the commissioner for inclusion in a report under this section is
confidential.
(d) The commissioner shall publish a statewide consolidated
analysis and recapitulation of reports filed under this section
that includes an analysis of:
(1) the 15 largest metropolitan statistical areas of
this state;
(2) the five largest counties of this state; and
(3) the 10 largest municipalities of this state.
SECTION 3. The changes in law made by this Act apply only to
the reporting of information regarding an extension of consumer
credit made on or after the effective date of this Act. The
reporting of information regarding an extension of consumer credit
made before the effective date of this Act is governed by the law in
effect on the date the extension of consumer credit was made, and
the former law is continued in effect for that purpose. For
purposes of this section, a refinance or renewal of an extension of
consumer credit is considered made on the date the extension of
consumer credit being refinanced or renewed was made.
SECTION 4. This Act takes effect September 1, 2015.