Texas House Bill HB3275

Texas 2023 - 88th Regular

• Filed: 3/2/23
• Out of House Committee: 4/21/23

Caption

Relating to the regulation of consumer credit transactions and the regulatory authority of the consumer credit commissioner; changing a fee.

Summary

House Bill 3275 aims to enhance the regulation of consumer credit transactions and strengthen the regulatory authority of the consumer credit commissioner in Texas. The bill introduces provisions for consumer education in financial matters, specifically targeting credit access businesses. It establishes a Texas Financial Education Endowment which requires credit access businesses to contribute annual fees for funding financial education and asset-building initiatives aimed at improving consumer credit profiles and financial literacy throughout the state. The impact of HB3275 can be significant on state laws governing financial transactions and consumer protections. By amending various sections of the Finance Code, the bill expands the commissioner's authority over credit transactions, ensuring compliance with both state and federal standards such as the Truth in Lending Act. This is expected to provide consumers with better protections against unfair lending practices and ensure they receive necessary disclosures related to loan terms, fees, and interest rates. General sentiment surrounding HB3275 appears to be supportive, particularly among those advocating for stronger consumer protections and educational initiatives. Stakeholders like consumer advocacy groups likely welcome the move towards enhancing financial literacy. The bill also aims to create a more standardized approach to handling consumer credit transactions, which proponents argue will lead to greater transparency and fairness in the lending process. However, there may be points of contention, particularly regarding the requirements placed on credit access businesses. Critics could argue that the additional fees and compliance measures may burden small businesses or hinder access to credit for lower-income consumers. As the bill is discussed in legislative sessions, debates may arise over the balance between consumer protection and the operational flexibility of credit providers. Overall, HB3275 represents a proactive step by the Texas legislature to address concerns surrounding consumer credit while fostering an environment of financial education that aims to empower consumers in managing their credit better.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 32. Tax Liens And Personal Liability
  • Section: New Section
  • Section: New Section

Finance Code

• Chapter 14. Consumer Credit Commissioner
  • Section: 113
  • Section: 113

• Chapter 341. General Provisions
  • Section: 301
  • Section: 401

• Chapter 371. Pawnshops
  • Section: 255
  • Section: 257
  • Section: 155
  • Section: 255
  • Section: 257

• Chapter 393. Credit Services Organizations
  • Section: 617

• Chapter 1. General Provisions
  • Section: New Section