| 1 | 1 | | 84R718 RWG-D |
|---|
| 2 | 2 | | By: McClendon H.B. No. 371 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to certain extensions of consumer credit facilitated by a |
|---|
| 8 | 8 | | credit access business for certain military personnel or their |
|---|
| 9 | 9 | | dependents. |
|---|
| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 11 | 11 | | SECTION 1. Section 393.625, Finance Code, is amended to |
|---|
| 12 | 12 | | read as follows: |
|---|
| 13 | 13 | | Sec. 393.625. MILITARY BORROWERS. (a) An extension of |
|---|
| 14 | 14 | | consumer credit [described by Section 393.602(a)] that is obtained |
|---|
| 15 | 15 | | by a credit access business for a member of the United States |
|---|
| 16 | 16 | | military or a dependent of a member of the United States military or |
|---|
| 17 | 17 | | that the business assisted that person in obtaining must comply |
|---|
| 18 | 18 | | with 10 U.S.C. Section 987 and any regulations adopted under that |
|---|
| 19 | 19 | | law, to the extent applicable. |
|---|
| 20 | 20 | | (b) With respect to a consumer who is a "covered member" or a |
|---|
| 21 | 21 | | "dependent" of a covered member, as those terms are defined by 10 |
|---|
| 22 | 22 | | U.S.C. Section 987, the term of an extension of consumer credit in |
|---|
| 23 | 23 | | the form of a deferred presentment transaction or motor vehicle |
|---|
| 24 | 24 | | title loan, including all renewals and refinances, obtained for the |
|---|
| 25 | 25 | | consumer by a credit access business or that a credit access |
|---|
| 26 | 26 | | business assists the consumer in obtaining may not exceed: |
|---|
| 27 | 27 | | (1) 90 days, if the debt is a deferred presentment |
|---|
| 28 | 28 | | transaction; or |
|---|
| 29 | 29 | | (2) 180 days, if the debt is a motor vehicle title |
|---|
| 30 | 30 | | loan. |
|---|
| 31 | 31 | | (c) With respect to a consumer who is a member of the reserve |
|---|
| 32 | 32 | | component of the United States armed forces, including the national |
|---|
| 33 | 33 | | guard, or a dependent of those reserve members, the term of an |
|---|
| 34 | 34 | | extension of consumer credit in the form of a deferred presentment |
|---|
| 35 | 35 | | transaction or motor vehicle title loan, including all renewals and |
|---|
| 36 | 36 | | refinances, obtained for the consumer by a credit access business |
|---|
| 37 | 37 | | or that a credit access business assists the consumer in obtaining |
|---|
| 38 | 38 | | may not exceed: |
|---|
| 39 | 39 | | (1) 90 days, if the debt is a deferred presentment |
|---|
| 40 | 40 | | transaction; or |
|---|
| 41 | 41 | | (2) 180 days, if the debt is a motor vehicle title |
|---|
| 42 | 42 | | loan. |
|---|
| 43 | 43 | | (d) For purposes of Subsection (c), "dependent," with |
|---|
| 44 | 44 | | respect to a member of the reserve component of the United States |
|---|
| 45 | 45 | | armed forces, means the spouse or a child of the member. |
|---|
| 46 | 46 | | SECTION 2. The changes in law made by this Act apply only to |
|---|
| 47 | 47 | | an extension of consumer credit made on or after the effective date |
|---|
| 48 | 48 | | of this Act. An extension of consumer credit made before the |
|---|
| 49 | 49 | | effective date of this Act is governed by the law in effect on the |
|---|
| 50 | 50 | | date the extension of consumer credit was made, and the former law |
|---|
| 51 | 51 | | is continued in effect for that purpose. |
|---|
| 52 | 52 | | SECTION 3. This Act takes effect September 1, 2015. |
|---|