86R1206 GRM-D
By: Bernal H.B. No. 190
A BILL TO BE ENTITLED
AN ACT
relating to verification by a credit services organization of a
consumer's ability to repay an extension of consumer credit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 393, Finance Code, is
amended by adding Section 393.308 to read as follows:
Sec. 393.308. ENSURING ABILITY TO REPAY EXTENSION OF
CONSUMER CREDIT. (a) A credit services organization may not obtain
for a consumer or assist a consumer in obtaining, including by
providing advice, an extension of consumer credit unless the credit
services organization finds, using independently verifiable
documentation of income and obligations, that the consumer can
reasonably:
(1) repay in cash, in accordance with the time and
schedule of payments established by contract and applicable law,
the extension of consumer credit and all associated fees and costs;
and
(2) pay due payments on all known obligations of the
consumer concurrently.
(b) The credit services organization must retain all
documentation used under Subsection (a) to establish the ability of
the consumer to repay an extension of consumer credit.
SECTION 2. The changes in law made by this Act apply only to
an extension of consumer credit made on or after the effective date
of this Act. An extension of consumer credit made before the
effective date of this Act is governed by the law in effect on the
date the extension of consumer credit was made, and the former law
is continued in effect for that purpose. For purposes of this
section, a refinance or renewal of an extension of consumer credit
is considered made on the date the extension of consumer credit
being refinanced or renewed was made.
SECTION 3. This Act takes effect September 1, 2019.