Texas 2015 - 84th Regular

Texas Senate Bill SB121 Compare Versions

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1	1	By: West S.B. No. 121
2	2	(In the Senate - Filed November 10, 2014; January 27, 2015,
3	3	read first time and referred to Committee on Business and Commerce;
4	4	May 12, 2015, reported adversely, with favorable Committee
5	5	Substitute by the following vote: Yeas 5, Nays 2; May 12, 2015,
6	6	sent to printer.)
7	7	Click here to see the committee vote
8	8	COMMITTEE SUBSTITUTE FOR S.B. No. 121 By: Watson
9	9
10	10
11	11	A BILL TO BE ENTITLED
12	12	AN ACT
13	13	relating to credit services organizations and extensions of
14	14	consumer credit facilitated by credit services organizations;
15	15	providing civil and administrative penalties.
16	16	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
17	17	SECTION 1. Subchapter M, Chapter 342, Finance Code, is
18	18	amended by adding Section 342.607 to read as follows:
19	19	Sec. 342.607. DEFERRED PRESENTMENT TRANSACTION DATA
20	20	COLLECTION SYSTEM. (a) In this section, "credit access business"
21	21	has the meaning assigned by Section 393.001(2-a).
22	22	(b) The commissioner shall establish and implement a
23	23	database for the compilation of information relating to deferred
24	24	presentment transactions that allows the commissioner or persons
25	25	who offer, service, or broker the transactions, including a credit
26	26	access business, to determine:
27	27	(1) whether an individual seeking to enter into a
28	28	deferred presentment transaction with the person has any
29	29	outstanding deferred presentment transactions entered into with
30	30	other persons;
31	31	(2) the total number of outstanding deferred
32	32	presentment transactions entered into by the individual described
33	33	by Subdivision (1) with other persons; and
34	34	(3) whether the person is in compliance with this
35	35	section and other provisions of law governing deferred presentment
36	36	transactions.
37	37	(c) The commissioner shall contract with a third-party
38	38	vendor to operate the database required by this section. In
39	39	selecting the vendor, the commissioner shall:
40	40	(1) consider the vendor's ability to meet the
41	41	requirements of this section;
42	42	(2) consider the cost of the vendor's services;
43	43	(3) give strong consideration to the vendor's ability
44	44	to prevent fraud, abuse, and other unlawful activity associated
45	45	with deferred presentment transactions;
46	46	(4) give strong consideration to whether the vendor
47	47	operates a similar database in another state; and
48	48	(5) give strong consideration to whether the vendor's
49	49	operation of the database would facilitate the enforcement of laws
50	50	governing deferred presentment transactions and the persons who
51	51	offer, service, or broker those transactions.
52	52	(d) The commissioner shall ensure that:
53	53	(1) the third-party vendor operating the database
54	54	operates the database in accordance with this section and rules
55	55	adopted by the finance commission under this section; and
56	56	(2) the database established under this section:
57	57	(A) allows persons required to submit
58	58	information to the database to submit and access the required
59	59	information from any location in this state;
60	60	(B) provides real-time access by the
61	61	commissioner to information contained in the database from any
62	62	location in this state; and
63	63	(C) contains safeguards to ensure that
64	64	information contained in the database may not be accessed by an
65	65	unauthorized person.
66	66	(e) A person who offers, services, or brokers a deferred
67	67	presentment transaction, including a credit access business, shall
68	68	submit to the database at the time the transaction is entered into
69	69	data relating to the transaction that the commissioner, by rule of
70	70	the finance commission, determines necessary.
71	71	(f) Information in the database is confidential and is not
72	72	subject to disclosure under Chapter 552, Government Code.
73	73	(g) The finance commission shall adopt rules as necessary to
74	74	implement this section, including rules:
75	75	(1) relating to the form and content of information to
76	76	be submitted to the database;
77	77	(2) prescribing a fee to be paid by persons required to
78	78	submit information to be included in the database under Subsection
79	79	(e); and
80	80	(3) establishing requirements for the retention,
81	81	archiving, and deletion of information entered into or stored in
82	82	the database.
83	83	(h) The third-party vendor shall charge a person who offers,
84	84	services, or brokers a deferred presentment transaction a fee to
85	85	access or use the database under this section. The fee may be
86	86	charged on a per-transaction basis and may be used only to pay the
87	87	costs associated with the maintenance of the database under this
88	88	section. The finance commission by rule must approve the amount of
89	89	the fee, which may not exceed $1 per deferred presentment
90	90	transaction.
91	91	(i) A person who ceases to offer, service, or broker
92	92	deferred presentment transactions shall continue to submit
93	93	information required by this section for any transactions that are
94	94	outstanding and with respect to which the person continues
95	95	collection efforts. Not later than the 10th day after the date the
96	96	person ceases to offer deferred presentment transactions, the
97	97	person shall submit to the commissioner for approval a plan for
98	98	continuing compliance with this section. The commissioner shall
99	99	promptly approve or disapprove the plan. The commissioner may
100	100	require a person to whom this subsection applies to submit a new or
101	101	modified plan.
102	102	SECTION 2. Section 392.301(a), Finance Code, is amended to
103	103	read as follows:
104	104	(a) In debt collection, a debt collector may not use
105	105	threats, coercion, or attempts to coerce that employ any of the
106	106	following practices:
107	107	(1) using or threatening to use violence or other
108	108	criminal means to cause harm to a person or property of a person;
109	109	(2) accusing falsely or threatening to accuse falsely
110	110	a person of fraud or any other crime;
111	111	(3) representing or threatening to represent to any
112	112	person other than the consumer that a consumer is wilfully refusing
113	113	to pay a nondisputed consumer debt when the debt is in dispute and
114	114	the consumer has notified in writing the debt collector of the
115	115	dispute;
116	116	(4) threatening to sell or assign to another the
117	117	obligation of the consumer and falsely representing that the result
118	118	of the sale or assignment would be that the consumer would lose a
119	119	defense to the consumer debt or would be subject to illegal
120	120	collection attempts;
121	121	(5) threatening that the debtor will be arrested for
122	122	nonpayment of a consumer debt without proper court proceedings;
123	123	(6) threatening to file a charge, complaint, or
124	124	criminal action against a debtor when the debtor has not violated a
125	125	criminal law;
126	126	(7) threatening that nonpayment of a consumer debt
127	127	will result in the seizure, repossession, or sale of the person's
128	128	property without proper court proceedings;
129	129	(8) referencing a certification signed by the consumer
130	130	as required by Section 393.630(b) or any penalties associated with
131	131	a violation of that section; or
132	132	(9) [(8)] threatening to take an action prohibited by
133	133	law.
134	134	SECTION 3. Section 393.001, Finance Code, is amended by
135	135	amending Subdivisions (1) and (3) and adding Subdivisions (1-a),
136	136	(2-a), (3-a), (4-a), (5), (6), (7), (8), (9), (10), (11), (12), and
137	137	(13) to read as follows:
138	138	(1) "Commissioner" means the consumer credit
139	139	commissioner.
140	140	(1-a) "Consumer" means an individual who is solicited
141	141	to purchase or who purchases the services of a credit services
142	142	organization.
143	143	(2-a) "Credit access business" means a credit services
144	144	organization that obtains for a consumer or assists a consumer in
145	145	obtaining an extension of consumer credit.
146	146	(3) "Credit services organization" means a person who
147	147	provides, or represents that the person can or will provide, for the
148	148	payment of valuable consideration any of the following services
149	149	with respect to the extension of consumer credit by others:
150	150	(A) improving a consumer's credit history or
151	151	rating;
152	152	(B) obtaining an extension of consumer credit for
153	153	a consumer in the form of a single-payment deferred presentment
154	154	transaction, a multiple-payment deferred presentment transaction,
155	155	a single-payment motor vehicle title loan, or a multiple-payment
156	156	motor vehicle title loan; or
157	157	(C) providing advice or assistance to a consumer
158	158	with regard to Paragraph (A) or (B).
159	159	(3-a) "Deferred presentment transaction" means a
160	160	single-payment or multiple-payment transaction defined as a
161	161	deferred presentment transaction by Section 341.001 in connection
162	162	with which the consumer is not required to provide real or personal
163	163	property as security.
164	164	(4-a) "Finance commission" means the Finance
165	165	Commission of Texas.
166	166	(5) "Military borrower" includes a "covered member" or
167	167	a "dependent" of a covered member, as those terms are defined by 10
168	168	U.S.C. Section 987 or a successor statute.
169	169	(6) "Motor vehicle title loan" means a single-payment
170	170	or multiple-payment loan in which an unencumbered motor vehicle is
171	171	given as the only security for the loan, except as provided by
172	172	Section 393.629(c). The term does not include a retail installment
173	173	transaction under Chapter 348 or another loan made to finance the
174	174	purchase of a motor vehicle.
175	175	(7) "Multiple-payment deferred presentment
176	176	transaction" means a deferred presentment transaction that is not a
177	177	single-payment deferred presentment transaction.
178	178	(8) "Multiple-payment motor vehicle title loan" means
179	179	a motor vehicle title loan that is not a single-payment motor
180	180	vehicle title loan.
181	181	(9) "Office" means the Office of Consumer Credit
182	182	Commissioner.
183	183	(10) "Refinance" means a rollover, renewal, or other
184	184	type of transaction in which all or a portion of the principal,
185	185	fees, or interest due under an outstanding extension of consumer
186	186	credit becomes due on a later date. The term does not include an
187	187	extended payment plan described by Section 393.638. The term
188	188	includes a new extension of consumer credit that:
189	189	(A) consists of debt arising from principal,
190	190	fees, or interest that was not paid in full under an outstanding or
191	191	previous extension of consumer credit; or
192	192	(B) is made on or before the seventh day after the
193	193	date a previous extension of consumer credit that a credit access
194	194	business obtained for a consumer or assisted a consumer in
195	195	obtaining was paid in full.
196	196	(11) "Service" means an act, conduct, or activity that
197	197	is performed or to be performed for a consumer's benefit or that
198	198	involves assisting a consumer in obtaining an extension of consumer
199	199	credit, including:
200	200	(A) negotiating or closing a loan or other
201	201	extension of consumer credit;
202	202	(B) issuing a guaranty, letter of credit, or
203	203	other credit enhancement; and
204	204	(C) servicing an extension of consumer credit.
205	205	(12) "Single-payment deferred presentment
206	206	transaction" means a deferred presentment transaction for which the
207	207	entire cash advance, interest, and fees are required under the
208	208	terms of the transaction to be payable in a single payment.
209	209	(13) "Single-payment motor vehicle title loan" means a
210	210	motor vehicle title loan for which the entire principal, interest,
211	211	and fees are required under the terms of the loan to be payable in a
212	212	single payment.
213	213	SECTION 4. Section 393.201, Finance Code, is amended by
214	214	amending Subsections (b) and (c) and adding Subsection (d) to read
215	215	as follows:
216	216	(b) In addition to the notice required by Section 393.202,
217	217	the contract must:
218	218	(1) contain the payment terms, including the total
219	219	payments to be made by the consumer, whether to the organization or
220	220	to another person;
221	221	(2) fully describe the services the organization shall
222	222	[is to] perform for the consumer or on behalf of a third party,
223	223	including each guarantee and each promise of a full or partial
224	224	refund and the estimated period for performing and completing all
225	225	of the services, not to exceed 180 days or the period permitted
226	226	under an extended payment plan authorized by Subchapter G;
227	227	(3) contain the address of the organization's
228	228	principal place of business; and
229	229	(4) contain the name and address of the organization's
230	230	agent in this state authorized to receive service of process.
231	231	(c) A contract with a credit access business[, as defined by
232	232	Section 393.601,] for the performance of services [described by
233	233	Section 393.602(a)] must, in addition to the requirements of
234	234	Subsection (b) and Section 393.302:
235	235	(1) contain a statement that there is no prepayment
236	236	penalty;
237	237	(2) contain a statement that a credit access business
238	238	must comply with Chapter 392 and the federal Fair Debt Collection
239	239	Practices Act (15 U.S.C. Section 1692 et seq.) with respect to an
240	240	extension of consumer credit [described by Section 393.602(a)];
241	241	(3) contain a statement that a person may not threaten
242	242	or pursue criminal charges against a consumer related to a check or
243	243	other debit authorization provided by the consumer as security for
244	244	a transaction in the absence of forgery, fraud, theft, or other
245	245	criminal conduct;
246	246	(4) contain a statement that a credit access business
247	247	must comply, to the extent applicable, with 10 U.S.C. Section 987
248	248	and any regulations adopted under that law with respect to an
249	249	extension of consumer credit [described by Section 393.602(a)];
250	250	(5) disclose to the consumer:
251	251	(A) the lender from whom the extension of
252	252	consumer credit is obtained;
253	253	(B) the interest paid or to be paid to the lender;
254	254	and
255	255	(C) the specific fees that will be paid to the
256	256	credit access business for the business's services and to any third
257	257	party; [and]
258	258	(6) contain the name and address of the office, the
259	259	office's website address, [Office of Consumer Credit Commissioner]
260	260	and the telephone number of the office's consumer helpline; and
261	261	(7) use model contract clauses adopted by rule of the
262	262	finance commission.
263	263	(d) The finance commission shall adopt rules to implement
264	264	this section.
265	265	SECTION 5. Section 393.222, Finance Code, is amended by
266	266	adding Subsection (a-1) to read as follows:
267	267	(a-1) A credit access business shall post, in the same
268	268	manner as a notice required under Subsection (a), and provide as a
269	269	separate document to a consumer, a notice prescribed by the finance
270	270	commission regarding the availability of extended payment plans
271	271	that describes the basic features of the plans.
272	272	SECTION 6. Section 393.223(a), Finance Code, is amended to
273	273	read as follows:
274	274	(a) Before performing services described by Section
275	275	393.001(2-a) [393.221(1)], a credit access business must provide to
276	276	a consumer a disclosure adopted by rule of the finance commission
277	277	[Finance Commission of Texas] that discloses the following in a
278	278	form prescribed by the commission:
279	279	(1) the interest, fees, and annual percentage rates,
280	280	as applicable, to be charged on a deferred presentment transaction
281	281	or on a motor vehicle title loan, as applicable, in comparison to
282	282	interest, fees, and annual percentage rates to be charged on other
283	283	alternative forms of consumer debt;
284	284	(2) the amount of accumulated fees a consumer would
285	285	incur by renewing or refinancing a deferred presentment transaction
286	286	or motor vehicle title loan that remains outstanding for a period of
287	287	two weeks, one month, two months, and three months; [and]
288	288	(3) information regarding the typical pattern of
289	289	repayment of deferred presentment transactions and motor vehicle
290	290	title loans; and
291	291	(4) the name of the credit access business and any
292	292	unique number assigned to the license issued to the business under
293	293	Subchapter G.
294	294	SECTION 7. Subchapter D, Chapter 393, Finance Code, is
295	295	amended by adding Sections 393.308 and 393.309 to read as follows:
296	296	Sec. 393.308. PROHIBITION ON OBTAINING CERTAIN LOANS OR
297	297	EXTENSIONS OF CREDIT. (a) A credit services organization may not
298	298	obtain for a consumer or assist a consumer in obtaining an extension
299	299	of consumer credit in any form other than in the form of a
300	300	single-payment deferred presentment transaction, a
301	301	multiple-payment deferred presentment transaction, a
302	302	single-payment motor vehicle title loan, or a multiple-payment
303	303	motor vehicle title loan.
304	304	(b) A credit services organization may obtain for a consumer
305	305	or assist a consumer in obtaining a loan or other extension of
306	306	consumer credit only if the loan or extension of consumer credit is
307	307	in the form of a deferred presentment transaction or motor vehicle
308	308	title loan described by Subsection (a) made by a third-party lender
309	309	that is unaffiliated with the credit services organization and does
310	310	not have any ownership, directors, officers, members, or employees
311	311	in common with the credit services organization.
312	312	(c) A credit services organization may not charge or receive
313	313	from a consumer a fee or other valuable consideration in connection
314	314	with a loan or other extension of consumer credit that is not a
315	315	deferred presentment transaction or motor vehicle title loan
316	316	described by Subsection (b).
317	317	(d) The finance commission may adopt rules to implement this
318	318	section.
319	319	(e) Notwithstanding Section 14.252, the commissioner may
320	320	assess an administrative penalty in an amount not to exceed $2,000
321	321	for each violation against a credit access business that violates
322	322	this section, regardless of whether the violation is knowing or
323	323	wilful.
324	324	(f) A consumer may maintain an action under this section for
325	325	any violation of this section. In any suit filed under this
326	326	section, a consumer may recover:
327	327	(1) damages in an amount not to exceed $10,000 for each
328	328	violation; and
329	329	(2) court costs and reasonable and necessary
330	330	attorney's fees.
331	331	Sec. 393.309. RESTRICTION ON AMOUNT CHARGED IN CONNECTION
332	332	WITH EXTENSION OF CONSUMER CREDIT. Total charges in connection
333	333	with an extension of consumer credit that a credit services
334	334	organization obtains for a consumer or assists the consumer in
335	335	obtaining, including interest, lender charges, and any valuable
336	336	consideration received by the credit services organization, may not
337	337	exceed the permissible interest and fee and other charges for a
338	338	similar type of consumer loan under Subchapter F, Chapter 342.
339	339	SECTION 8. Section 393.602, Finance Code, is amended by
340	340	amending Subsections (a) and (b) and adding Subsection (b-1) to
341	341	read as follows:
342	342	(a) This subchapter applies only to a credit services
343	343	organization that obtains for a consumer or assists a consumer in
344	344	obtaining an extension of consumer credit [in the form of:
345	345	[(1) a deferred presentment transaction; or
346	346	[(2) a motor vehicle title loan].
347	347	(b) Subject to Section 393.309, a [A] credit access business
348	348	may assess fees as agreed to between the parties for [its] services
349	349	performed to obtain an extension of consumer credit for a consumer
350	350	or assist a consumer in obtaining an extension of consumer credit in
351	351	the form of a deferred presentment transaction or motor vehicle
352	352	title loan or a refinance of such an extension of consumer credit
353	353	[as agreed to between the parties]. A credit access business fee
354	354	may be calculated daily, biweekly, monthly, or on another periodic
355	355	basis. A credit access business is permitted to charge amounts
356	356	allowed by other laws, as applicable. A fee may not be charged
357	357	unless it is disclosed.
358	358	(b-1) Notwithstanding Subsection (a) or (b), a credit
359	359	services organization that is not obtaining for a consumer or
360	360	assisting a consumer in obtaining an extension of consumer credit
361	361	may also charge or receive from a consumer a fee or other valuable
362	362	consideration in connection with advice, assistance, or other
363	363	services that the credit services organization provides to improve
364	364	a consumer's credit history or rating.
365	365	SECTION 9. Section 393.604, Finance Code, is amended by
366	366	amending Subsection (a) and adding Subsection (d) to read as
367	367	follows:
368	368	(a) An application for a license under this subchapter must:
369	369	(1) be under oath;
370	370	(2) give the approximate location from which the
371	371	business is to be conducted;
372	372	(3) identify the business's principal parties in
373	373	interest;
374	374	(4) contain the name, physical address, and telephone
375	375	number of all third-party lender organizations:
376	376	(A) with which the business contracts to provide
377	377	services; [described by Section 393.602(a)] or
378	378	(B) from which the business arranges extensions
379	379	of consumer credit [described by Section 393.602(a)]; [and]
380	380	(5) include a copy of each agreement between the
381	381	business and a third-party lender organization:
382	382	(A) with which the business contracts to provide
383	383	services; or
384	384	(B) from which the business arranges extensions
385	385	of consumer credit; and
386	386	(6) contain other relevant information that the
387	387	commissioner requires for the findings required under Section
388	388	393.607.
389	389	(d) Information provided by an applicant under this section
390	390	is public information for the purposes of Chapter 552, Government
391	391	Code.
392	392	SECTION 10. Sections 393.622(a) and (b), Finance Code, are
393	393	amended to read as follows:
394	394	(a) The finance commission may:
395	395	(1) adopt rules necessary to enforce and administer
396	396	this subchapter;
397	397	(2) adopt rules with respect to reports of summary
398	398	business information required to be submitted [the quarterly
399	399	reporting] by a licensed credit access business under Section
400	400	393.627 [licensed under this subchapter of summary business
401	401	information relating to extensions of consumer credit described by
402	402	Section 393.602(a)]; [and]
403	403	(3) adopt rules with respect to periodic examination
404	404	by the office relating to extensions of consumer credit the
405	405	business obtained for a consumer or assisted a consumer in
406	406	obtaining [described by Section 393.602(a)], including rules
407	407	related to charges for defraying the reasonable cost of conducting
408	408	the examinations; and
409	409	(4) adopt rules identifying extensions of consumer
410	410	credit that are refinances.
411	411	(b) The finance commission may adopt rules under this
412	412	section to allow the commissioner to review, as part of a periodic
413	413	examination, any relevant contracts between the credit access
414	414	business and the third-party lender organizations with which the
415	415	credit access business contracts to provide services [described by
416	416	Section 393.602(a)] or from which the business arranges extensions
417	417	of consumer credit [described by Section 393.602(a)]. A contract
418	418	or information obtained by the commissioner under this section is
419	419	considered proprietary and confidential to the respective parties
420	420	to the contract, and is not subject to disclosure under Chapter 552,
421	421	Government Code.
422	422	SECTION 11. Subchapter G, Chapter 393, Finance Code, is
423	423	amended by adding Section 393.6221 to read as follows:
424	424	Sec. 393.6221. EXAMINATION OR INVESTIGATION BY
425	425	COMMISSIONER; OATHS. During an examination or an investigation,
426	426	the commissioner or the commissioner's representative may
427	427	administer oaths and examine a person under oath on a subject
428	428	pertinent to a matter that the commissioner is authorized or
429	429	required to consider, investigate, or secure information about
430	430	under this chapter.
431	431	SECTION 12. Section 393.625, Finance Code, is amended to
432	432	read as follows:
433	433	Sec. 393.625. MILITARY BORROWERS. (a) An extension of
434	434	consumer credit [described by Section 393.602(a)] that is obtained
435	435	by a credit access business for a military borrower [member of the
436	436	United States military or a dependent of a member of the United
437	437	States military] or that the business assisted a military borrower
438	438	[that person] in obtaining must comply with 10 U.S.C. Section 987
439	439	and any regulations adopted under that law, to the extent
440	440	applicable.
441	441	(b) The term of an extension of consumer credit, including
442	442	all renewals and refinances, obtained for a military borrower by a
443	443	credit access business or that a credit access business assists a
444	444	military borrower in obtaining may not exceed:
445	445	(1) 90 days, if the debt is a deferred presentment
446	446	transaction; or
447	447	(2) 180 days, if the debt is a motor vehicle title
448	448	loan.
449	449	(c) The finance commission shall adopt a disclosure
450	450	relating to the provisions of state and federal law applicable to a
451	451	military borrower who obtains an extension of consumer credit from
452	452	or with the assistance of a credit access business. A credit access
453	453	business shall provide this disclosure to military borrowers for
454	454	whom the credit access business seeks to obtain an extension of
455	455	consumer credit.
456	456	(d) Notwithstanding Section 14.252, the commissioner may
457	457	assess an administrative penalty in an amount not to exceed $5,000
458	458	for each violation against a credit access business that violates
459	459	this section, regardless of whether the violation is knowing or
460	460	wilful.
461	461	SECTION 13. Section 393.626, Finance Code, is amended to
462	462	read as follows:
463	463	Sec. 393.626. DEBT COLLECTION PRACTICES. A violation of
464	464	Chapter 392 by a credit access business with respect to obtaining
465	465	for a consumer or assisting a consumer in obtaining an extension of
466	466	consumer credit [described by Section 393.602(a)] constitutes a
467	467	violation of this subchapter.
468	468	SECTION 14. Section 393.627, Finance Code, is amended to
469	469	read as follows:
470	470	Sec. 393.627. REPORTS [QUARTERLY REPORT] TO COMMISSIONER.
471	471	(a) A credit access business shall file [a] quarterly and annual
472	472	reports [report] with the commissioner on forms [a form] prescribed
473	473	by the commissioner that provide [provides] the following
474	474	information relating to extensions of consumer credit [described by
475	475	Section 393.602(a)] during the preceding quarter or year, as
476	476	applicable:
477	477	(1) the number of consumers for whom the business
478	478	obtained or assisted in obtaining those extensions of consumer
479	479	credit;
480	480	(2) the number of those extensions of consumer credit
481	481	obtained by the business or that the business assisted consumers in
482	482	obtaining;
483	483	(3) the number of refinancing transactions of the
484	484	extensions of consumer credit described by Subdivision (2);
485	485	(4) the number of consumers refinancing the extensions
486	486	of consumer credit described by Subdivision (2);
487	487	(5) the number of consumers refinancing more than once
488	488	the extensions of consumer credit described by Subdivision (2);
489	489	(6) the average amount of the extensions of consumer
490	490	credit described by Subdivision (2);
491	491	(7) the total amount of fees charged by the business
492	492	for the activities described by Subdivision (1);
493	493	(8) the number of vehicles surrendered or repossessed
494	494	under the terms of an extension of consumer credit in the form of a
495	495	motor vehicle title loan obtained by the business or that the
496	496	business assisted a consumer in obtaining;
497	497	(9) the number of extended payment plans offered by
498	498	the credit access business and entered into by consumers, for each
499	499	product [the mean, median, and mode of the number of extensions of
500	500	consumer credit obtained by consumers as a result of entering into
501	501	the extensions of consumer credit described by Subdivision (2)];
502	502	and
503	503	(10) any related information the commissioner
504	504	determines necessary.
505	505	(b) All information submitted by a credit access business to
506	506	the commissioner for inclusion in a report under this section is
507	507	confidential.
508	508	(c) The commissioner shall publish a statewide consolidated
509	509	analysis and recapitulation of reports filed under this section.
510	510	The commissioner may also publish a consolidated analysis and
511	511	recapitulation of the reports that provides an analysis of the 15
512	512	largest metropolitan statistical areas and the five largest
513	513	counties of this state.
514	514	SECTION 15. Subchapter G, Chapter 393, Finance Code, is
515	515	amended by adding Sections 393.629 through 393.640 to read as
516	516	follows:
517	517	Sec. 393.629. GENERAL LIMITATIONS ON EXTENSIONS OF CONSUMER
518	518	CREDIT; LANGUAGE REQUIREMENTS; PAYMENT METHOD. (a) The
519	519	provisions of this chapter applicable to a credit access business
520	520	apply to any consumer physically located in this state at the time
521	521	the extension of consumer credit is made, regardless of whether the
522	522	extension of consumer credit was made in person in this state.
523	523	(b) The finance commission by rule shall adopt Spanish
524	524	versions of the model contract clauses and all notices that a credit
525	525	access business is required to give to a consumer under this
526	526	chapter. A credit access business shall provide to the consumer a
527	527	contract that uses the adopted Spanish clauses and notices to the
528	528	consumer if in the process of obtaining an extension of consumer
529	529	credit the consumer requests that the documents be provided in
530	530	Spanish or if the contract is negotiated in Spanish. The executed
531	531	contract and any other binding and controlling document between the
532	532	credit access business and the consumer must be written in English.
533	533	(c) A credit access business shall accept a payment made in
534	534	cash or by electronic transfer, cashier's check, teller's check, or
535	535	money order offered by the consumer or another party, to retire or
536	536	otherwise pay down debt incurred under an extension of consumer
537	537	credit that a credit access business obtained for a consumer or
538	538	assisted a consumer in obtaining under this chapter. For a motor
539	539	vehicle title loan, a consumer may also grant a security interest in
540	540	an authorized debit of a bank account.
541	541	(d) The term of an extension of consumer credit obtained for
542	542	a consumer by a credit access business or that a credit access
543	543	business assists a consumer in obtaining may not exceed 180 days.
544	544	If a term of less than 180 days for an extension of consumer credit
545	545	is specified under this chapter, the shorter term applies.
546	546	Sec. 393.630. LIMITATION ON OUTSTANDING DEBT. (a) At any
547	547	one time, a consumer may have only one outstanding debt from a
548	548	deferred presentment transaction that a credit access business
549	549	obtained for the consumer or assisted the consumer in obtaining and
550	550	one outstanding debt from a motor vehicle title loan that a credit
551	551	access business obtained for the consumer or assisted the consumer
552	552	in obtaining.
553	553	(b) To obtain an extension of consumer credit in the form of
554	554	a deferred presentment transaction facilitated through the
555	555	services of a credit access business, a consumer must sign a written
556	556	certification on a form adopted by finance commission rule stating
557	557	that the consumer has no other outstanding debt from an extension of
558	558	consumer credit in the form of a deferred presentment transaction.
559	559	(c) A credit access business shall in good faith verify that
560	560	a consumer is not falsifying the certification required by
561	561	Subsection (b), to the best knowledge and ability of the person
562	562	acting on behalf of the credit access business for that
563	563	transaction. A person acting on behalf of a credit access business
564	564	has satisfied this requirement if the person considers all
565	565	information that the consumer shares with the person in negotiating
566	566	the transaction and if the person makes a reasonable effort to
567	567	verify the consumer's representations with any records that the
568	568	credit access business typically consults in the normal course of
569	569	its business.
570	570	(d) A credit access business that violates this section is
571	571	subject to a civil penalty in an amount not to exceed $1,000 for
572	572	each violation.
573	573	Sec. 393.631. LIMITATIONS RELATING TO MOTOR VEHICLE
574	574	SECURING DEBT. (a) The proceeds of the sale of a repossessed motor
575	575	vehicle that secured a motor vehicle title loan shall satisfy all
576	576	outstanding and unpaid indebtedness under that extension of
577	577	consumer credit, and the consumer is not liable for any deficiency
578	578	resulting from the sale unless the consumer has committed fraud or
579	579	has committed a wilful act of misconduct that damages or impairs the
580	580	value of the motor vehicle.
581	581	(b) Any fee charged to a consumer for the repossession of a
582	582	motor vehicle given as security for a motor vehicle title loan must
583	583	be reasonable and may not exceed the amount actually paid by the
584	584	credit access business or the lender to a third party for the
585	585	repossession.
586	586	(c) A repossession under this chapter must comply with
587	587	Chapter 9, Business & Commerce Code, except as otherwise provided
588	588	by this section.
589	589	Sec. 393.632. ESTABLISHMENT OF INCOME OR VALUE; REFERENCE
590	590	AMOUNT. (a) A credit access business must require documentation
591	591	to establish a consumer's income for purposes of this subchapter.
592	592	Acceptable forms of documentation include paper, facsimile, or
593	593	electronic copies of:
594	594	(1) a payroll document;
595	595	(2) a paycheck;
596	596	(3) a bank statement;
597	597	(4) a report from a nationally or regionally
598	598	recognized credit and data reporting company;
599	599	(5) Internal Revenue Service Form W-2 from the
600	600	preceding year;
601	601	(6) the income tax return from the preceding tax year;
602	602	(7) a signed letter from the consumer's employer at the
603	603	time the extension of consumer credit is sought; or
604	604	(8) any other document approved by finance commission
605	605	rule.
606	606	(b) A credit access business shall retain a copy of the
607	607	documentation used to establish a consumer's income under
608	608	Subsection (a) according to the business's standard records
609	609	retention policy and any applicable rule or regulation establishing
610	610	a record retention period.
611	611	(c) A credit access business that relies in good faith on a
612	612	document presented by the consumer under Subsection (a) to
613	613	establish a consumer's income has complied with this section to the
614	614	extent the income established under that document meets the
615	615	applicable requirements under this chapter.
616	616	(d) A credit access business that obtains for a consumer or
617	617	assists a consumer in obtaining an extension of consumer credit
618	618	through the Internet or other electronic means may rely on
619	619	nationally or regionally recognized database reporting systems and
620	620	may maintain a record of the database reporting system results used
621	621	to comply with Subsections (a) and (b).
622	622	(e) To establish the retail value of a motor vehicle for
623	623	purposes of this subchapter, a credit access business must:
624	624	(1) rely on a nationally or regionally recognized
625	625	vehicle appraisal guide or agree in good faith with the consumer to
626	626	the vehicle's retail value; and
627	627	(2) record the recognized or agreed-on value.
628	628	(f) For purposes of this chapter, $28,000 is the initial
629	629	reference amount with respect to a consumer's income, and the
630	630	commissioner shall adjust this amount annually in accordance with
631	631	the Consumer Price Index.
632	632	Sec. 393.633. CERTAIN LOCAL ORDINANCES NOT PREEMPTED. This
633	633	chapter does not preempt a local ordinance regulating a credit
634	634	access business or an extension of consumer credit obtained for a
635	635	consumer by a credit access business or that a credit access
636	636	business assists a consumer in obtaining, if the ordinance is
637	637	compatible with and equal to or more stringent than a requirement
638	638	prescribed by this chapter.
639	639	Sec. 393.634. SINGLE-PAYMENT DEFERRED PRESENTMENT
640	640	TRANSACTION. (a) The sum of all fees, principal, interest, and
641	641	other amounts due under an extension of consumer credit in the form
642	642	of a single-payment deferred presentment transaction that a credit
643	643	access business obtains for a consumer or assists a consumer in
644	644	obtaining, excluding fees, may not exceed:
645	645	(1) 25 percent of the consumer's gross monthly income,
646	646	if the consumer's gross annual income is less than the reference
647	647	amount; or
648	648	(2) 35 percent of the consumer's gross monthly income,
649	649	if the consumer is not described by Subdivision (1) and is not a
650	650	military borrower to whom a different limit applies under federal
651	651	law.
652	652	(b) The term of an original or refinanced extension of
653	653	consumer credit in the form of a single-payment deferred
654	654	presentment transaction that a credit access business obtains for a
655	655	consumer or assists a consumer in obtaining may not be less than 10
656	656	days or longer than 35 days.
657	657	(c) An extension of consumer credit in the form of a
658	658	single-payment deferred presentment transaction that a credit
659	659	access business obtains for a consumer or assists a consumer in
660	660	obtaining may not be refinanced more than four times.
661	661	(d) If a consumer who has not entered into an extended
662	662	payment plan with the credit access business in the preceding 12
663	663	months refinances a single-payment deferred presentment
664	664	transaction for the fourth time:
665	665	(1) the credit access business must offer at least one
666	666	extended payment plan to the consumer before initiating any debt
667	667	collection activities;
668	668	(2) the consumer may request, prior to the offer
669	669	required by Subdivision (1) being made, an extended payment plan at
670	670	any time on or after the date the consumer refinances the deferred
671	671	presentment transaction for the fourth time and on or before the
672	672	fifth day after the date on which the fourth refinance must be
673	673	repaid in full;
674	674	(3) to comply with the requirement of Subdivision (1),
675	675	the credit access business shall send a written notice to the
676	676	consumer disclosing the following:
677	677	(A) the amount due under the current terms of the
678	678	extension of consumer credit if the consumer declines an extended
679	679	payment plan;
680	680	(B) the amounts due on each of the installment
681	681	dates of an extended payment plan; and
682	682	(C) the date by which the consumer must accept
683	683	the extended payment plan in writing, which date shall be at least
684	684	five days after the date of such notice;
685	685	(4) the credit access business may not initiate debt
686	686	collection activities unless:
687	687	(A) the consumer fails to accept the extended
688	688	payment plan in writing on or before the deadline contained in the
689	689	notice required by Subdivision (3);
690	690	(B) the consumer declines the extended payment
691	691	plan; or
692	692	(C) the consumer fails to make a payment required
693	693	by an extended payment plan that the consumer accepted; and
694	694	(5) if the consumer declines an extended payment plan
695	695	that a credit access business is required to offer under
696	696	Subdivision (1), the consumer must sign an extended payment plan
697	697	waiver on a form prescribed by the finance commission.
698	698	(e) An extended payment plan required to be offered under
699	699	Subsection (d) must comply with Section 393.638.
700	700	(f) A credit access business may offer a consumer an
701	701	extended payment plan that provides the consumer with additional
702	702	time to repay the debts obtained through a single-payment deferred
703	703	presentment transaction, either before or after the consumer
704	704	refinances the single-payment deferred presentment transaction for
705	705	the fourth time, more than once in a 12-month period so long as the
706	706	credit access business does not assess additional fees under the
707	707	extended payment plan and the credit access business fully
708	708	describes the terms of the extended payment plan, including all due
709	709	dates and the amount due on each due date, to the consumer before
710	710	the consumer enters into the extended payment plan. An extended
711	711	payment plan offered under this subsection is not required to
712	712	comply with Section 393.638.
713	713	(g) A credit access business shall accept a partial payment
714	714	that complies with Section 393.629(c) paid by a consumer or on
715	715	behalf of a consumer to pay down outstanding principal owed under a
716	716	single-payment deferred presentment transaction that the credit
717	717	access business obtained for the consumer or assisted the consumer
718	718	in obtaining.
719	719	Sec. 393.635. MULTIPLE-PAYMENT DEFERRED PRESENTMENT
720	720	TRANSACTION. (a) The sum of all fees, principal, interest, and
721	721	other amounts due under any scheduled payment of an extension of
722	722	consumer credit in the form of a multiple-payment deferred
723	723	presentment transaction that a credit access business obtains for a
724	724	consumer or assists a consumer in obtaining may not exceed:
725	725	(1) 10 percent of the consumer's gross monthly income,
726	726	if the consumer's gross annual income is less than the reference
727	727	amount; or
728	728	(2) 15 percent of the consumer's gross monthly income,
729	729	if the consumer is not described by Subdivision (1) and is not a
730	730	military borrower to whom a different limit applies under federal
731	731	law.
732	732	(b) An extension of consumer credit in the form of a
733	733	multiple-payment deferred presentment transaction that a credit
734	734	access business obtains for a consumer or assists a consumer in
735	735	obtaining may not be payable by the consumer in more than 12
736	736	installments or have an original term of more than 180 days, and the
737	737	loan agreement must specify the number, date, and total amount due
738	738	with regard to each installment.
739	739	(c) An original or refinanced extension of consumer credit
740	740	in the form of a multiple-payment deferred presentment transaction
741	741	that a credit access business obtains for a consumer or assists a
742	742	consumer in obtaining must be payable on a fully amortizing,
743	743	declining-principal-balance basis with substantially equal
744	744	payments. If a credit access business precomputes its fees under a
745	745	multiple-payment deferred presentment transaction and a consumer
746	746	prepays in full the extension of consumer credit in that form, the
747	747	credit access business shall refund any unearned fees to the
748	748	consumer.
749	749	(d) The first installment of an extension of consumer credit
750	750	in the form of a multiple-payment deferred presentment transaction
751	751	that a credit access business obtains for a consumer or assists a
752	752	consumer in obtaining may not be due before the 10th day after the
753	753	date the consumer enters into the loan agreement. An installment
754	754	may not be due before the 14th day or after the 31st day after the
755	755	date a previous installment is due.
756	756	(e) An extension of consumer credit in the form of a
757	757	multiple-payment deferred presentment transaction that a credit
758	758	access business obtains for a consumer or assists a consumer in
759	759	obtaining may not be refinanced, may not include more than 12
760	760	installments, and may not have a term that exceeds 180 days,
761	761	excluding an extended payment plan offered in compliance with
762	762	Section 393.638.
763	763	(f) A credit access business may offer a consumer an
764	764	extended payment plan if the extended payment plan complies with
765	765	Section 393.638 and if the credit access business fully describes
766	766	the terms of the extended payment plan, including all due dates and
767	767	the amount due on each due date, to the consumer before the consumer
768	768	enters into the extended repayment plan.
769	769	Sec. 393.636. SINGLE-PAYMENT MOTOR VEHICLE TITLE LOAN.
770	770	(a) The sum of all fees, principal, interest, and other amounts
771	771	due under an extension of consumer credit in the form of a
772	772	single-payment motor vehicle title loan that a credit access
773	773	business obtains for a consumer or assists a consumer in obtaining,
774	774	excluding fees, may not exceed the lesser of:
775	775	(1) six percent of the consumer's gross annual income,
776	776	if the consumer's gross annual income is less than the reference
777	777	amount;
778	778	(2) eight percent of the consumer's gross annual
779	779	income, if the consumer is not described by Subdivision (1) and is
780	780	not a military borrower to whom a different limit applies under
781	781	federal law; or
782	782	(3) 70 percent of the retail value of the motor vehicle
783	783	securing the debt.
784	784	(b) The term of an original or refinanced extension of
785	785	consumer credit in the form of a single-payment motor vehicle title
786	786	loan that a credit access business obtains for a consumer or assists
787	787	a consumer in obtaining may not be less than 30 days or longer than
788	788	35 days.
789	789	(c) An extension of consumer credit in the form of a
790	790	single-payment motor vehicle title loan that a credit access
791	791	business obtains for a consumer or assists a consumer in obtaining
792	792	may not be refinanced more than six times. The combined terms of
793	793	the original extension of consumer credit and any refinanced
794	794	extensions of consumer credit, excluding an extended payment plan
795	795	offered in compliance with Subsection (f) or Section 393.638, may
796	796	not exceed 180 days. The credit access business shall fully
797	797	describe the terms of an extended payment plan, including all due
798	798	dates and the amount due on each due date, to the consumer before
799	799	the consumer enters into the extended payment plan.
800	800	(d) If a consumer who has not entered into an extended
801	801	payment plan with the credit access business in the preceding 12
802	802	months refinances a single-payment motor vehicle title loan for the
803	803	sixth time:
804	804	(1) the credit access business must offer at least one
805	805	extended payment plan to the consumer before initiating any
806	806	activities to repossess the vehicle securing the debt;
807	807	(2) the consumer may request, prior to the offer
808	808	required by Subdivision (1) being made, an extended payment plan at
809	809	any time on or after the date the consumer refinances the motor
810	810	vehicle title loan for the sixth time and on or before the fifth day
811	811	after the date on which the sixth refinance must be repaid in full;
812	812	(3) to comply with the requirement of Subdivision (1),
813	813	the credit access business shall send a written notice to the
814	814	consumer disclosing the following:
815	815	(A) the amount due under the current terms of the
816	816	extension of consumer credit if the consumer declines an extended
817	817	payment plan;
818	818	(B) the amounts due on each of the installment
819	819	dates of an extended payment plan; and
820	820	(C) the date by which the consumer must accept
821	821	the extended payment plan in writing, which date shall be at least
822	822	five days after the date of such notice;
823	823	(4) the credit access business may not repossess the
824	824	vehicle securing the debt unless:
825	825	(A) the consumer fails to accept the extended
826	826	payment plan in writing on or before the deadline contained in the
827	827	notice required by Subdivision (3);
828	828	(B) the consumer declines the extended payment
829	829	plan; or
830	830	(C) the consumer fails to make a payment required
831	831	by an extended payment plan that the consumer accepted; and
832	832	(5) if the consumer declines an extended payment plan
833	833	that a credit access business is required to offer under
834	834	Subdivision (1), the consumer must sign an extended payment plan
835	835	waiver on a form prescribed by the finance commission.
836	836	(e) An extended payment plan required to be offered under
837	837	Subsection (d) must comply with Section 393.638.
838	838	(f) A credit access business may offer a consumer an
839	839	extended payment plan that provides the consumer with additional
840	840	time to repay the debts obtained through a single-payment motor
841	841	vehicle title loan, either before or after the consumer refinances
842	842	the single-payment motor vehicle title loan for the sixth time,
843	843	more than once in a 12-month period so long as the credit access
844	844	business does not assess additional fees under the extended payment
845	845	plan and the credit access business fully describes the terms of the
846	846	extended payment plan, including all due dates and the amount due on
847	847	each due date, to the consumer before the consumer enters into the
848	848	extended payment plan. An extended payment plan offered under this
849	849	subsection is not required to comply with Section 393.638.
850	850	(g) A credit access business shall accept a partial payment
851	851	that complies with Section 393.629(c) paid by a consumer or on
852	852	behalf of a consumer to pay down outstanding principal owed under a
853	853	single-payment motor vehicle title loan that the credit access
854	854	business obtained for the consumer or assisted the consumer in
855	855	obtaining.
856	856	Sec. 393.637. MULTIPLE-PAYMENT MOTOR VEHICLE TITLE LOAN.
857	857	(a) The amount advanced to a consumer under an extension of
858	858	consumer credit in the form of a multiple-payment motor vehicle
859	859	title loan that a credit access business obtains for a consumer or
860	860	assists a consumer in obtaining, excluding fees, may not exceed 70
861	861	percent of the retail value of the motor vehicle securing the debt.
862	862	(b) The sum of all fees, principal, interest, and other
863	863	amounts due under any scheduled payment of an extension of consumer
864	864	credit in the form of a multiple-payment motor vehicle title loan
865	865	that a credit access business obtains for a consumer or assists a
866	866	consumer in obtaining may not exceed:
867	867	(1) 20 percent of the consumer's gross monthly income,
868	868	if the consumer's gross annual income is less than the reference
869	869	amount; or
870	870	(2) 30 percent of the consumer's gross monthly income,
871	871	if the consumer is not described by Subdivision (1) and is not a
872	872	military borrower to whom a different limit applies under federal
873	873	law.
874	874	(c) An extension of consumer credit in the form of a
875	875	multiple-payment motor vehicle title loan that a credit access
876	876	business obtains for a consumer or assists a consumer in obtaining
877	877	must be payable on a fully amortizing, declining-principal-balance
878	878	basis with substantially equal payments. If a credit access
879	879	business precomputes its fees under a multiple-payment motor
880	880	vehicle title loan and a consumer prepays the loan in full, the
881	881	credit access business shall refund any unearned fees to the
882	882	consumer.
883	883	(d) An extension of consumer credit in the form of a
884	884	multiple-payment motor vehicle title loan that a credit access
885	885	business obtains for a consumer or assists a consumer in obtaining
886	886	may not be payable by the consumer in more than six installments,
887	887	and the loan agreement must specify the number, date, and total
888	888	amount due with regard to each installment.
889	889	(e) The first installment of an extension of consumer credit
890	890	in the form of a multiple-payment motor vehicle title loan that a
891	891	credit access business obtains for a consumer or assists a consumer
892	892	in obtaining may not be due before the 10th day after the date the
893	893	consumer enters into the loan agreement. A subsequent installment
894	894	may not be due before the 28th day after the date the previous
895	895	installment of the loan is due.
896	896	(f) An extension of consumer credit in the form of a
897	897	multiple-payment motor vehicle title loan that a credit access
898	898	business obtains for a consumer or assists a consumer in obtaining
899	899	may not be refinanced and the loan term may not exceed 180 days,
900	900	except as provided by Subsection (g).
901	901	(g) A credit access business may not initiate any activities
902	902	to repossess the vehicle securing the debt under a multiple-payment
903	903	motor vehicle title loan that a credit access business obtains for a
904	904	consumer or assists a consumer in obtaining before offering the
905	905	consumer at least one extended payment plan. An extended payment
906	906	plan may cause the extension of consumer credit to extend beyond 180
907	907	days so long as the extended payment plan complies with Section
908	908	393.638 and the credit access business fully describes the terms of
909	909	the extended payment plan, including all due dates and the amount
910	910	due on each due date, to the consumer before the consumer enters
911	911	into the extended payment plan.
912	912	(h) If the credit access business is required to offer a
913	913	consumer an extended payment plan under Subsection (g), the credit
914	914	access business shall send a written notice to the consumer
915	915	disclosing the following:
916	916	(1) the amount due under the current terms of the
917	917	extension of consumer credit if the consumer declines an extended
918	918	payment plan;
919	919	(2) the amounts due on each of the installment dates of
920	920	an extended payment plan; and
921	921	(3) the date by which the consumer must accept the
922	922	extended payment plan in writing, which date shall be at least five
923	923	days after the date of such notice.
924	924	(i) The credit access business may not repossess the vehicle
925	925	securing the debt unless:
926	926	(1) the consumer fails to accept the extended payment
927	927	plan in writing on or before the deadline contained in the notice
928	928	required by Subsection (h)(3);
929	929	(2) the consumer declines the extended payment plan;
930	930	or
931	931	(3) the consumer fails to make a payment required by an
932	932	extended payment plan that the consumer accepted.
933	933	(j) If the consumer declines the extended payment plan, the
934	934	consumer must sign an extended payment plan waiver on a form
935	935	prescribed by the finance commission.
936	936	Sec. 393.638. EXTENDED PAYMENT PLAN REQUIREMENTS.
937	937	(a) This section applies to extended payment plans required to be
938	938	offered under Sections 393.634, 393.635, 393.636, and 393.637.
939	939	(b) An extended payment plan must provide for payment in at
940	940	least:
941	941	(1) four substantially equal installments, after
942	942	which the outstanding balance will be paid in full, with respect to
943	943	a single-payment deferred presentment transaction or
944	944	single-payment motor vehicle title loan; or
945	945	(2) two substantially equal installments added to the
946	946	original and refinanced term of the extension of consumer credit,
947	947	after which the outstanding balance, including only the fees that
948	948	would have been due under the original extension of consumer
949	949	credit, will be paid in full, with respect to a multiple-payment
950	950	deferred presentment transaction or multiple-payment motor vehicle
951	951	title loan.
952	952	(c) The period between installment payments on an extended
953	953	payment plan may not be shorter than:
954	954	(1) 10 days, with respect to a single-payment deferred
955	955	presentment transaction; or
956	956	(2) 30 days, with respect to a multiple-payment
957	957	deferred presentment transaction, a single-payment motor vehicle
958	958	title loan, or a multiple-payment motor vehicle title loan.
959	959	(d) The first payment owed under an extended payment plan
960	960	may not be due before the 10th day after the date the consumer
961	961	requests an extended payment plan.
962	962	(e) A credit access business may not assess additional fees
963	963	or assist a consumer in obtaining additional extensions of consumer
964	964	credit if the consumer is paying an extension of credit under an
965	965	extended payment plan.
966	966	(f) A consumer may pay in full a debt subject to an extended
967	967	payment plan at any time without prepayment penalties.
968	968	(g) A person may not engage in debt collection or vehicle
969	969	repossession activities for a debt subject to an extended payment
970	970	plan if the consumer is in compliance with the extended payment
971	971	plan.
972	972	(h) A person may not use a device, subterfuge, or pretense
973	973	to evade the extended payment plan requirements and limitations
974	974	imposed on a credit access business under this subchapter.
975	975	Sec. 393.639. REFINANCES. (a) Any refinance of an
976	976	extension of consumer credit that a credit access business obtains
977	977	for a consumer or assists a consumer in obtaining:
978	978	(1) must be authorized under this subchapter;
979	979	(2) must be in the same form as the original extension
980	980	of consumer credit; and
981	981	(3) must meet all the requirements applicable to the
982	982	original extension of consumer credit, including the duration,
983	983	transaction, and extended payment plan requirements under this
984	984	subchapter, including the applicable income-based or vehicle
985	985	value-based limitations under Section 393.634(a), 393.635(a),
986	986	393.636(a), or 393.637(b), except as otherwise provided by this
987	987	chapter.
988	988	(b) For purposes of this section, a single-payment deferred
989	989	presentment transaction, a multiple-payment deferred presentment
990	990	transaction, a single-payment motor vehicle title loan, and a
991	991	multiple-payment motor vehicle title loan are the different forms
992	992	of extensions of consumer credit that a credit access business may
993	993	obtain for a consumer or assist a consumer in obtaining.
994	994	(c) The terms of a refinanced extension of consumer credit
995	995	may be the same as or different from the terms of the original
996	996	extension of consumer credit.
997	997	(d) A person may not use a device, subterfuge, or pretense
998	998	to evade the refinance requirements and limitations imposed on a
999	999	credit access business under this subchapter.
1000	1000	Sec. 393.640. RULES. The finance commission shall adopt
1001	1001	any rules necessary to implement Sections 393.629-393.639.
1002	1002	SECTION 16. Section 411.095, Government Code, is amended to
1003	1003	read as follows:
1004	1004	Sec. 411.095. ACCESS TO CRIMINAL HISTORY RECORD
1005	1005	INFORMATION: CONSUMER CREDIT COMMISSIONER. The consumer credit
1006	1006	commissioner is entitled to obtain from the department criminal
1007	1007	history record information that relates to a person who is an
1008	1008	applicant for or holder of a license under Chapter 342, 347, 348,
1009	1009	351, 353, [or] 371, or 393, Finance Code.
1010	1010	SECTION 17. Sections 393.221 and 393.601, Finance Code, are
1011	1011	repealed.
1012	1012	SECTION 18. The consumer credit commissioner shall
1013	1013	establish and implement the database under Section 342.607, Finance
1014	1014	Code, as added by this Act, not later than January 1, 2016, and
1015	1015	shall prescribe the date by which a person who offers, services, or
1016	1016	brokers a deferred presentment transaction must begin submitting
1017	1017	data as provided by that section.
1018	1018	SECTION 19. The changes in law made by this Act apply only
1019	1019	to an extension of consumer credit made on or after the effective
1020	1020	date of this Act. An extension of consumer credit made before the
1021	1021	effective date of this Act is governed by the law in effect on the
1022	1022	date the extension of consumer credit was made, and the former law
1023	1023	is continued in effect for that purpose. For purposes of this
1024	1024	section, a refinance or renewal of an extension of consumer credit
1025	1025	is considered made on the date the extension of consumer credit
1026	1026	being refinanced or renewed was made.
1027	1027	SECTION 20. This Act takes effect September 1, 2015.
1028	1028	* * * * *