| 1 | 1 | | 87R7568 MLH-F |
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| 2 | 2 | | By: Turner of Tarrant H.B. No. 2813 |
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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 extensions |
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| 8 | 8 | | of consumer credit that a credit services organization obtains for |
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| 9 | 9 | | a consumer or assists a consumer in obtaining. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter D, Chapter 393, Finance Code, is |
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| 12 | 12 | | amended by adding Section 393.308 to read as follows: |
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| 13 | 13 | | Sec. 393.308. RESTRICTION ON CHARGES CHARGED IN CONNECTION |
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| 14 | 14 | | WITH EXTENSIONS OF CONSUMER CREDIT. (a) For purposes of this |
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| 15 | 15 | | section, the annual percentage rate of an extension of consumer |
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| 16 | 16 | | credit is calculated including the total charges charged to the |
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| 17 | 17 | | consumer in connection with the extension of consumer credit, |
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| 18 | 18 | | including interest, lender charges, and any fees or any other |
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| 19 | 19 | | valuable consideration received by the credit services |
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| 20 | 20 | | organization or a representative of the organization. |
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| 21 | 21 | | (b) The annual percentage rate of an extension of consumer |
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| 22 | 22 | | credit that a credit services organization obtains for a consumer |
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| 23 | 23 | | or assists a consumer in obtaining may not exceed 36 percent. |
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| 24 | 24 | | SECTION 2. Section 393.602(b), Finance Code, is amended to |
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| 25 | 25 | | read as follows: |
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| 26 | 26 | | (b) Subject to Section 393.308, a [A] credit access business |
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| 27 | 27 | | may assess fees for its services as agreed to between the parties. |
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| 28 | 28 | | A credit access business fee may be calculated daily, biweekly, |
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| 29 | 29 | | monthly, or on another periodic basis. A credit access business is |
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| 30 | 30 | | permitted to charge amounts allowed by other laws, as applicable. A |
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| 31 | 31 | | fee may not be charged unless it is disclosed. |
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| 32 | 32 | | SECTION 3. Section 393.308, Finance Code, as added by this |
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| 33 | 33 | | Act, applies only to an extension of consumer credit made on or |
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| 34 | 34 | | after the effective date of this Act. An extension of consumer |
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| 35 | 35 | | credit made before the effective date of this Act is governed by the |
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| 36 | 36 | | law in effect on the date the extension of consumer credit was made, |
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| 37 | 37 | | and the former law is continued in effect for that purpose. |
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| 38 | 38 | | SECTION 4. This Act takes effect September 1, 2021. |
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