Texas 2019 - 86th Regular

Texas House Bill HB1786

Caption

Relating to regulation of certain credit services organizations.

Impact

If enacted, HB 1786 will amend the Finance Code to provide more stringent requirements for credit access businesses. It will require these organizations to post a schedule of all fees related to the services they offer prominently, ensuring that consumers can easily access this information. Moreover, credit access businesses will be obliged to present detailed disclosures about interest rates and potential fees before engaging in any transactions. This legislative change aims to provide consumers with clearer information, enabling them to make better-informed decisions concerning their short-term financial needs.

Summary

House Bill 1786 seeks to enhance the regulation of credit services organizations, particularly focusing on transparency and consumer protection in the context of payday and auto title loans. The bill defines credit access businesses and mandates several disclosures that these organizations must provide to consumers prior to offering services. The goal of the legislation is to ensure that consumers are adequately informed about the potential financial impacts of such credit arrangements, including the costs associated with refinancing and the general patterns of repayment that consumers typically face.

Contention

While the bill is largely aimed at improving consumer protections, there are potential points of contention it may raise. For instance, proponents argue that such regulations will safeguard vulnerable consumers from predatory lending practices, while opponents might contend that excessive regulation could limit access to credit for individuals in need. The balance between regulation and access to credit services could fuel debates, particularly around the implications these rules may have on credit availability for economically disadvantaged populations.

Companion Bills

No companion bills found.

Previously Filed As

TX HB297

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX SB1371

Relating to the regulation of consumer credit transactions and the regulatory authority of the consumer credit commissioner; changing a fee.

TX HB3275

Relating to the regulation of consumer credit transactions and the regulatory authority of the consumer credit commissioner; changing a fee.

TX SB2245

Relating to the regulation of earned wage access services; creating a criminal offense; providing an administrative penalty; authorizing a fee.

TX SB895

Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.

TX HB1384

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.

TX HB3573

Relating to modernizing the regulation of money services businesses.

TX HB3827

Relating to the regulation of earned wage access services; requiring an occupational license; providing an administrative penalty; imposing fees.

TX HB2256

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.

TX HB1831

Relating to the regulation of the cultivation, manufacture, processing, distribution, sale, testing, transportation, delivery, transfer, possession, use, and taxation of cannabis and cannabis products and the local regulation of cannabis establishments; providing for expunction of records relating to certain decriminalized conduct; authorizing the imposition of fees; requiring an occupational license; creating a criminal offense; imposing a tax.

Similar Bills

No similar bills found.