87R7569 MLH-F
By: Turner of Tarrant H.B. No. 3391
A BILL TO BE ENTITLED
AN ACT
relating to fees paid to a third party in connection with certain
extensions of consumer credit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 302, Finance Code, is
amended by adding Section 302.003 to read as follows:
Sec. 302.003. PROHIBITION ON THIRD-PARTY FEES TO ARRANGE OR
GUARANTEE CERTAIN EXTENSIONS OF CONSUMER CREDIT. (a) A fee paid or
to be paid to a third party to assist a consumer in the transacting,
arranging, guaranteeing, or negotiating of an extension of credit
may not be contracted for, charged, or received by a creditor or
third party in connection with the extension of credit if:
(1) the extension of credit is secured by a
non-purchase money security interest in personal property or is
unsecured; and
(2) the proceeds of the extension of credit are used
for personal, family, or household purposes.
(b) The amount of a fee contracted for, charged, or received
in violation of Subsection (a) is considered interest for usury
purposes under state law.
SECTION 2. The changes in law made by this Act apply only to
an extension of consumer credit made on or after the effective date
of this Act.
SECTION 3. This Act takes effect September 1, 2021.