TX
Texas House Bill HB242

Texas 2019 - 86th Regular

Texas House Bill HB242

Caption

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

Impact

The implications of HB 242 are significant for state laws governing consumer credit. By refining definitions and introducing stricter rules for credit services organizations, the bill seeks to prevent exploitation of vulnerable consumers by requiring transparency in costs associated with credit. The bill also establishes limits on how much a consumer can be charged and sets specific guidelines for refinancing consumer debt. This aims to create an environment where consumers can make informed financial decisions while reducing the risk of falling into cyclical debt traps.

Summary

House Bill 242 is designed to amend existing financial regulations relating to credit services organizations and the extensions of consumer credit they facilitate. The bill defines various forms of consumer credit, including single-payment and multiple-payment deferred presentment transactions, as well as motor vehicle title loans. It establishes new rules regarding the documentation and practices of credit access businesses, ensuring consumer protections in these financial transactions. One notable provision is that the bill increases criminal penalties for certain violations within the realm of consumer credit transactions, aiming to deter predatory lending practices.

Contention

However, there are potential points of contention surrounding HB 242. Critics may argue that the enhanced regulations could limit the availability of credit services to those who need it, particularly for low-income consumers who often rely on such services. There might also be concerns regarding the balance of state versus municipal power, as the bill clarifies that local ordinances regulating credit access businesses remain valid, allowing municipalities to establish stricter regulations if desired. This dual layer of regulation could lead to complexities in compliance for credit services organizations operating in multiple jurisdictions, prompting debate about the effectiveness of the bill in achieving its consumer protection goals.

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 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 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 SB895

Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of 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 SB224

Relating to catalytic converters, including criminal conduct involving catalytic converters; providing an administrative penalty; creating a criminal offense; increasing a criminal penalty; increasing a fee.

TX HB4598

Relating to catalytic converters, including criminal conduct involving catalytic converters; providing an administrative penalty; creating a criminal offense; increasing a criminal penalty; increasing a fee.

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 SB1427

Relating to certain criminal conduct and organizations that threaten the security of this state and its residents and borders; increasing criminal penalties.

Similar Bills

TX HB768

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

TX HB3047

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

TX HB297

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

TX HB206

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

TX HB1258

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

TX HB1134

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

TX HB2808

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

TX SB1716

Relating to extensions of consumer credit a credit services organization obtains for a consumer or assists a consumer in obtaining; providing a civil penalty.