Texas House Bill HB193

Texas 2019 - 86th Regular

Caption

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

Impact

This legislation amends the Finance Code of Texas to ensure that consumers engaging with credit access businesses are adequately informed of the terms of their contracts. The requirement for bilingual documents is particularly significant given Texas's diverse population, effectively making credit services more accessible to Spanish-speaking individuals. This change not only promotes inclusivity but also ensures that all consumers can make informed decisions regarding their financial agreements.

Summary

House Bill 193 focuses on contracts and documents associated with credit access businesses. It mandates that organizations provide consumers with clear and comprehensible contracts in both English and Spanish before signing. The bill aims to enhance transparency and consumer understanding, promoting fair practices within the credit services industry. By requiring agreements to be written in plain language and in an easily readable format, it seeks to protect consumers from potentially misleading terms and conditions in financial agreements.

Contention

While proponents argue that HB 193 will bolster consumer rights and lessen the chances of exploitation in the credit market, there are concerns over the additional regulatory requirements imposed on credit access businesses. Some stakeholders feel that these obligations may lead to increased operational costs and potential limitations in the availability of credit services, particularly for those in low-income areas. The balance between enhancing consumer protection and maintaining sufficient service availability remains a point of contention among legislators and industry representatives.