84R718 RWG-D
By: McClendon H.B. No. 371
A BILL TO BE ENTITLED
AN ACT
relating to certain extensions of consumer credit facilitated by a
credit access business for certain military personnel or their
dependents.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 393.625, Finance Code, is amended to
read as follows:
Sec. 393.625. MILITARY BORROWERS. (a) An extension of
consumer credit [described by Section 393.602(a)] that is obtained
by a credit access business for a member of the United States
military or a dependent of a member of the United States military or
that the business assisted that person in obtaining must comply
with 10 U.S.C. Section 987 and any regulations adopted under that
law, to the extent applicable.
(b) With respect to a consumer who is a "covered member" or a
"dependent" of a covered member, as those terms are defined by 10
U.S.C. Section 987, the term of an extension of consumer credit in
the form of a deferred presentment transaction or motor vehicle
title loan, including all renewals and refinances, obtained for the
consumer by a credit access business or that a credit access
business assists the consumer in obtaining may not exceed:
(1) 90 days, if the debt is a deferred presentment
transaction; or
(2) 180 days, if the debt is a motor vehicle title
loan.
(c) With respect to a consumer who is a member of the reserve
component of the United States armed forces, including the national
guard, or a dependent of those reserve members, the term of an
extension of consumer credit in the form of a deferred presentment
transaction or motor vehicle title loan, including all renewals and
refinances, obtained for the consumer by a credit access business
or that a credit access business assists the consumer in obtaining
may not exceed:
(1) 90 days, if the debt is a deferred presentment
transaction; or
(2) 180 days, if the debt is a motor vehicle title
loan.
(d) For purposes of Subsection (c), "dependent," with
respect to a member of the reserve component of the United States
armed forces, means the spouse or a child of the member.
SECTION 2. The changes in law made by this Act apply only to
an extension of consumer credit made on or after the effective date
of this Act. 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.
SECTION 3. This Act takes effect September 1, 2015.