Texas 2019 - 86th Regular

Texas House Bill HB1786 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R10802 GRM-D
2	2	By: Rosenthal H.B. No. 1786
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to regulation of certain credit services organizations.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 393.221(1), Finance Code, is amended to
10	10	read as follows:
11	11	(1) "Credit access business" means a credit services
12	12	organization that obtains for a consumer or assists a consumer in
13	13	obtaining an extension of consumer credit, including an extension
14	14	of consumer credit in the form of a deferred presentment
15	15	transaction or a motor vehicle title loan.
16	16	SECTION 2. Section 393.222(a), Finance Code, is amended to
17	17	read as follows:
18	18	(a) A credit access business shall post, in a conspicuous
19	19	location in an area of the business accessible to consumers and on
20	20	any Internet website, including a social media site, maintained by
21	21	the credit access business:
22	22	(1) a schedule of all fees to be charged for services
23	23	performed by the credit access business in connection with the
24	24	extension of consumer credit, including deferred presentment
25	25	transactions and motor vehicle title loans[, as applicable];
26	26	(2) a notice of the name and address of the Office of
27	27	Consumer Credit Commissioner and the telephone number of the
28	28	office's consumer helpline; and
29	29	(3) for an extension of consumer credit in the form of
30	30	a deferred presentment transaction or motor vehicle title loan, a
31	31	notice that reads as follows:
32	32	"An advance of money obtained through a payday loan or auto
33	33	title loan is not intended to meet long-term financial needs. A
34	34	payday loan or auto title loan should only be used to meet immediate
35	35	short-term cash needs. Refinancing the loan rather than paying the
36	36	debt in full when due will require the payment of additional
37	37	charges."
38	38	SECTION 3. Section 393.223(a), Finance Code, is amended to
39	39	read as follows:
40	40	(a) Before performing services described by Section
41	41	393.221(1), a credit access business must provide to a consumer a
42	42	disclosure adopted by rule of the Finance Commission of Texas that
43	43	discloses the following in a form prescribed by the commission:
44	44	(1) the interest, fees, and annual percentage rates,
45	45	as applicable, to be charged on the extension of consumer credit
46	46	that the credit access business proposes to obtain for the consumer
47	47	or assist the consumer in obtaining [a deferred presentment
48	48	transaction or on a motor vehicle title loan, as applicable,] in
49	49	comparison to interest, fees, and annual percentage rates to be
50	50	charged on other alternative forms of consumer debt;
51	51	(2) the amount of accumulated fees a consumer would
52	52	incur by renewing or refinancing the extension of consumer credit
53	53	if it were to remain [a deferred presentment transaction or motor
54	54	vehicle title loan that remains] outstanding for a period of two
55	55	weeks, one month, two months, and three months; and
56	56	(3) information regarding the typical pattern of
57	57	repayment of extensions of consumer credit, including deferred
58	58	presentment transactions and motor vehicle title loans.
59	59	SECTION 4. Section 393.601(2), Finance Code, is amended to
60	60	read as follows:
61	61	(2) "Credit access business" means a credit services
62	62	organization that obtains for a consumer or assists a consumer in
63	63	obtaining an extension of consumer credit, including an extension
64	64	of consumer credit in the form of a deferred presentment
65	65	transaction or a motor vehicle title loan.
66	66	SECTION 5. Section 393.602(a), Finance Code, is amended to
67	67	read as follows:
68	68	(a) This subchapter applies only to a credit services
69	69	organization that obtains for a consumer or assists a consumer in
70	70	obtaining an extension of consumer credit [in the form of:
71	71	[(1) a deferred presentment transaction; or
72	72	[(2) a motor vehicle title loan].
73	73	SECTION 6. The changes in law made by this Act apply only to
74	74	an extension of consumer credit made on or after the effective date
75	75	of this Act. An extension of consumer credit made before the
76	76	effective date of this Act is governed by the law in effect on the
77	77	date the extension of consumer credit was made, and the former law
78	78	is continued in effect for that purpose.
79	79	SECTION 7. This Act takes effect September 1, 2019.