| 1 | 1 | | 87R6620 MLH-D |
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| 2 | 2 | | By: Ordaz Perez H.B. No. 2624 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a restriction on total charges charged for certain |
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| 8 | 8 | | extensions of consumer credit that are facilitated by credit access |
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| 9 | 9 | | businesses and entered into by consumers residing in disaster |
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| 10 | 10 | | areas. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 393.602(b), Finance Code, is amended to |
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| 13 | 13 | | read as follows: |
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| 14 | 14 | | (b) Subject to Section 393.629, a [A] credit access business |
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| 15 | 15 | | may assess fees for its services as agreed to between the parties. |
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| 16 | 16 | | A credit access business fee may be calculated daily, biweekly, |
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| 17 | 17 | | monthly, or on another periodic basis. A credit access business is |
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| 18 | 18 | | permitted to charge amounts allowed by other laws, as applicable. A |
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| 19 | 19 | | fee may not be charged unless it is disclosed. |
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| 20 | 20 | | SECTION 2. Subchapter G, Chapter 393, Finance Code, is |
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| 21 | 21 | | amended by adding Section 393.629 to read as follows: |
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| 22 | 22 | | Sec. 393.629. RESTRICTION ON CHARGES CHARGED IN CONNECTION |
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| 23 | 23 | | WITH DEFERRED PRESENTMENT TRANSACTIONS OF CONSUMERS IN DISASTER |
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| 24 | 24 | | AREAS. (a) In this section: |
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| 25 | 25 | | (1) "Designated disaster period" means the period |
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| 26 | 26 | | beginning on the date of the proclamation or executive order of the |
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| 27 | 27 | | governor declaring the disaster and ending on the 30th day after the |
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| 28 | 28 | | date the disaster declaration expires or is terminated. |
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| 29 | 29 | | (2) "Disaster area" means an area of this state that is |
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| 30 | 30 | | subject to a declaration of disaster by the governor under Section |
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| 31 | 31 | | 418.014, Government Code. |
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| 32 | 32 | | (b) The annual percentage rate of an extension of consumer |
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| 33 | 33 | | credit in the form of a deferred presentment transaction that is |
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| 34 | 34 | | entered into by a consumer residing in a disaster area and that a |
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| 35 | 35 | | credit access business obtains for the consumer or assists the |
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| 36 | 36 | | consumer in obtaining may not exceed 30 percent during the |
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| 37 | 37 | | designated disaster period and the two-year period immediately |
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| 38 | 38 | | following that period. |
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| 39 | 39 | | (c) For purposes of this section, the annual percentage rate |
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| 40 | 40 | | of an extension of consumer credit in the form of a deferred |
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| 41 | 41 | | presentment transaction is calculated including the total charges |
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| 42 | 42 | | charged to the consumer in connection with the extension of |
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| 43 | 43 | | consumer credit, including interest, lender charges, and any fees |
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| 44 | 44 | | or any other valuable consideration received by the credit access |
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| 45 | 45 | | business or a representative of the credit access business. |
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| 46 | 46 | | SECTION 3. Section 393.629, Finance Code, as added by this |
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| 47 | 47 | | Act, applies only to an extension of consumer credit made on or |
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| 48 | 48 | | after the effective date of this Act. An extension of consumer |
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| 49 | 49 | | credit made before the effective date of this Act is governed by the |
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| 50 | 50 | | law in effect on the date the extension of consumer credit was made, |
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| 51 | 51 | | and the former law is continued in effect for that purpose. |
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| 52 | 52 | | SECTION 4. This Act takes effect September 1, 2021. |
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