Texas House Bill HB197

Texas 2017 - 85th Regular

• Filed: 11/14/16

Caption

Relating to contracts and other documents issued by credit access businesses.

Impact

The requirements set forth by HB197 will significantly impact state regulations governing credit access businesses. By enforcing bilingual documentation and clearer language, the bill could potentially reduce misunderstandings and disputes arising from misinterpretation of financial contracts. This move is seen as a step towards safeguarding consumers, particularly those from non-English speaking backgrounds, enhancing their ability to navigate credit-related agreements confidently.

Summary

House Bill 197 aims to enhance the transparency and accessibility of contracts and other documents that credit access businesses provide to consumers. The bill mandates that contracts must be delivered to consumers in both English and Spanish, ensuring that a broader range of Texans can understand the terms and conditions associated with credit extensions. Additionally, the language used in these documents must be simple and easily comprehensible, thus promoting consumer protection and informed decision-making.

Contention

While proponents of the bill argue that it fosters financial literacy and protects vulnerable consumers, some stakeholders within the credit services industry may perceive these amendments as an additional regulatory burden. There is a concern that increased compliance requirements could lead to higher operational costs, which businesses might pass on to consumers in the form of increased fees. Critics may also argue that the bill does not address more systemic issues related to predatory lending practices, focusing instead on a piecemeal solution that improves documentation without tackling the root problems.