| 1 | | - | H.B. No. 3855 |
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| 1 | + | By: Longoria, Murphy (Senate Sponsor - Creighton) H.B. No. 3855 |
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| 2 | + | (In the Senate - Received from the House May 8, 2019; |
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| 3 | + | May 10, 2019, read first time and referred to Committee on Business & |
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| 4 | + | Commerce; May 20, 2019, reported favorably by the following vote: |
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| 5 | + | Yeas 9, Nays 0; May 20, 2019, sent to printer.) |
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| 6 | + | Click here to see the committee vote |
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| 4 | 10 | | AN ACT |
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| 5 | 11 | | relating to methods of computing interest charges on certain |
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| 6 | 12 | | consumer loans. |
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| 7 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 14 | | SECTION 1. Section 342.201, Finance Code, is amended by |
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| 9 | 15 | | adding Subsection (e-1) to read as follows: |
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| 10 | 16 | | (e-1) The interest charge under Subsection (e) must be |
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| 11 | 17 | | contracted for, charged, or received using the scheduled |
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| 12 | 18 | | installment earnings method or the true daily earnings method under |
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| 13 | 19 | | one of the following methods: |
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| 14 | 20 | | (1) applying the applicable daily rate to each part of |
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| 15 | 21 | | the unpaid principal balance corresponding to the brackets |
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| 16 | 22 | | described by Subsection (e) for the actual or scheduled number of |
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| 17 | 23 | | days during a payment period; or |
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| 18 | 24 | | (2) applying a single equivalent daily rate to the |
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| 19 | 25 | | unpaid principal balance for the actual or scheduled number of days |
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| 20 | 26 | | during a payment period, where the single equivalent daily rate is |
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| 21 | 27 | | determined at the inception of the loan using the scheduled |
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| 22 | 28 | | installment earnings method and would earn an amount of interest |
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| 23 | 29 | | authorized under Subsection (e) if the debt were paid to maturity |
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| 24 | 30 | | according to the schedule of payments. |
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| 25 | 31 | | SECTION 2. This Act takes effect September 1, 2019. |
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| 26 | | - | ______________________________ ______________________________ |
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| 27 | | - | President of the Senate Speaker of the House |
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| 28 | | - | I certify that H.B. No. 3855 was passed by the House on May 8, |
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| 29 | | - | 2019, by the following vote: Yeas 136, Nays 4, 1 present, not |
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| 30 | | - | voting. |
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| 31 | | - | ______________________________ |
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| 32 | | - | Chief Clerk of the House |
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| 33 | | - | I certify that H.B. No. 3855 was passed by the Senate on May |
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| 34 | | - | 22, 2019, by the following vote: Yeas 31, Nays 0. |
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| 35 | | - | ______________________________ |
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| 36 | | - | Secretary of the Senate |
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| 37 | | - | APPROVED: _____________________ |
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| 38 | | - | Date |
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| 39 | | - | _____________________ |
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| 40 | | - | Governor |
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| 32 | + | * * * * * |
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