| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | By: Bernal H.B. No. 741 | |
| 2 | 2 | ||
| 3 | 3 | ||
| 4 | 4 | A BILL TO BE ENTITLED | |
| 5 | 5 | AN ACT | |
| 6 | 6 | relating to the affordability of extension of consumer credit. | |
| 7 | 7 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 8 | 8 | SECTION 1. Subchapter D, Chapter 393, Finance Code, is | |
| 9 | 9 | amended by adding Section 393.308 to read as follows: | |
| 10 | 10 | Sec. 393.308. ENSURING AFFORDABILITY OF EXTENSION OF | |
| 11 | 11 | CONSUMER CREDIT. A credit services organization may not obtain an | |
| 12 | 12 | extension of consumer credit or provide advice or assistance to a | |
| 13 | 13 | consumer with regard to obtaining an extension of consumer credit | |
| 14 | 14 | unless the credit services organization finds, using independently | |
| 15 | 15 | verifiable documentation of income and obligations, that the | |
| 16 | 16 | consumer can reasonably repay in cash, in the time and schedule of | |
| 17 | 17 | payments established by contract and by all applicable law, the | |
| 18 | 18 | extension of consumer credit and all associated fees and costs and | |
| 19 | 19 | pay all known obligations concurrently. The credit services | |
| 20 | 20 | organization must retain all documentation used to establish the | |
| 21 | 21 | affordability of an extension of consumer credit. | |
| 22 | 22 | SECTION 2. This Act takes effect September 1, 2017. |