Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Impact
The impact of HB 1134 extends to enhancing consumer protections by regulating how credit access businesses can operate and what charges they can impose. By capping fees relative to a consumer's income and introducing limits on refinancing options, the bill seeks to mitigate the risk of consumers becoming trapped in cycles of debt. Additionally, the bill clarifies the roles and responsibilities of credit services organizations, thus increasing transparency in financial transactions and fostering a more informed consumer base. Municipalities retain the power to impose stricter regulations if they conflict with the state law, thus maintaining local governance over financial practices.
Summary
House Bill 1134 is a legislative proposal that aims to reform the regulation of credit services organizations and the extensions of consumer credit facilitated by these organizations in Texas. The bill establishes a clearer definition of key terms related to credit services and introduces specific provisions governing various forms of short-term consumer credit, such as single-payment and multiple-payment deferred presentment transactions, as well as motor vehicle title loans. An important aspect of the bill is its requirement for all fees and amounts due under these agreements to not exceed 20% of the consumer's gross monthly income, thereby providing a protective measure for consumers who may otherwise face crippling debt from such transactions.
Contention
There are notable points of contention surrounding the bill, with some advocacy groups arguing that while it does introduce necessary protections, it may also inadvertently limit access to credit for lower-income individuals who rely on high-interest loans in times of financial need. Critics of the bill express concern that imposing strict limits could push consumers towards less regulated financial products or options that may not have the same level of oversight. Furthermore, the effectiveness of the bill relies heavily on the proper implementation of regulations and consumer education about their rights and available options in the credit market.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to a restriction on total charges charged for extensions of consumer credit that a credit services organization obtains for a consumer or assists a consumer in obtaining.
Relating to a restriction on total charges charged for certain extensions of consumer credit that are facilitated by credit access businesses and entered into by consumers residing in disaster areas.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to catalytic converters, including criminal conduct involving catalytic converters; providing an administrative penalty; creating a criminal offense; increasing a criminal penalty; increasing a fee.
Relating to catalytic converters, including criminal conduct involving catalytic converters; providing an administrative penalty; creating a criminal offense; increasing a criminal penalty; increasing a fee.
Relating to certain criminal conduct and organizations that threaten the security of this state and its residents and borders; increasing criminal penalties.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to extensions of consumer credit a credit services organization obtains for a consumer or assists a consumer in obtaining; providing a civil penalty.