| 1 | 1 | | 84R1640 ATP-D |
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| 2 | 2 | | By: Ellis S.B. No. 91 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a restriction on charges charged for certain extensions |
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| 8 | 8 | | of consumer credit that a credit access business obtains for a |
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| 9 | 9 | | consumer or assists a consumer in obtaining. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter D, Chapter 393, Finance Code, is |
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| 12 | 12 | | amended by adding Section 393.308 to read as follows: |
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| 13 | 13 | | Sec. 393.308. RESTRICTION ON INTEREST CHARGED IN CONNECTION |
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| 14 | 14 | | WITH CERTAIN EXTENSIONS OF CONSUMER CREDIT FACILITATED BY CREDIT |
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| 15 | 15 | | ACCESS BUSINESS. (a) In this section, "credit access business" has |
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| 16 | 16 | | the meaning assigned by Section 393.601. |
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| 17 | 17 | | (b) For purposes of this section, the annual percentage rate |
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| 18 | 18 | | of an extension of consumer credit is calculated including the |
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| 19 | 19 | | total charges charged to the consumer in connection with the |
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| 20 | 20 | | extension of consumer credit, including interest, lender charges, |
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| 21 | 21 | | and any fees or any other valuable consideration received by the |
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| 22 | 22 | | credit access business. |
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| 23 | 23 | | (c) The annual percentage rate of an extension of consumer |
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| 24 | 24 | | credit in the form of a deferred presentment transaction or motor |
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| 25 | 25 | | vehicle title loan that a credit access business obtains for a |
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| 26 | 26 | | consumer or assists a consumer in obtaining may not exceed 36 |
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| 27 | 27 | | percent. |
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| 28 | 28 | | SECTION 2. Section 393.602(b), Finance Code, is amended to |
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| 29 | 29 | | read as follows: |
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| 30 | 30 | | (b) Subject to Section 393.308, a [A] credit access business |
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| 31 | 31 | | may assess fees for its services as agreed to between the parties. |
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| 32 | 32 | | A credit access business fee may be calculated daily, biweekly, |
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| 33 | 33 | | monthly, or on another periodic basis. A credit access business is |
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| 34 | 34 | | permitted to charge amounts allowed by other laws, as applicable. A |
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| 35 | 35 | | fee may not be charged unless it is disclosed. |
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| 36 | 36 | | SECTION 3. The changes in law made by this Act to Chapter |
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| 37 | 37 | | 393, Finance Code, apply only to an extension of consumer credit |
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| 38 | 38 | | made on or after the effective date of this Act. An extension of |
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| 39 | 39 | | consumer credit made before the effective date of this Act is |
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| 40 | 40 | | governed by the law in effect on the date the extension of consumer |
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| 41 | 41 | | credit was made, and the former law is continued in effect for that |
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| 42 | 42 | | purpose. |
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| 43 | 43 | | SECTION 4. This Act takes effect September 1, 2015. |
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