Texas 2025 - 89th Regular

Texas House Bill HB476 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R2482 MLH-D
2	2	By: Bucy H.B. No. 476
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the maximum permitted rate of interest, sum of fees, and
10	10	other amounts that may be charged in connection with deferred
11	11	presentment transactions; creating a criminal offense.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subchapter M, Chapter 342, Finance Code, is
14	14	amended by adding Section 342.606 to read as follows:
15	15	Sec. 342.606. MAXIMUM INTEREST RATES. (a) Unless a lower
16	16	rate of interest is otherwise provided by law, the maximum rate or
17	17	amount of interest that may be contracted for, charged, or received
18	18	from a borrower is:
19	19	(1) for a deferred presentment transaction that
20	20	advances more than $300, 38.5 percent a year; and
21	21	(2) for a deferred presentment transaction that
22	22	advances not more than $300, 36 percent a year.
23	23	(b) A deferred presentment transaction entered into in
24	24	violation of this section is void and unenforceable.
25	25	(c) A lender commits an offense if the lender enters into a
26	26	deferred presentment transaction in violation of this section. An
27	27	offense under this section is a Class A misdemeanor.
28	28	SECTION 2. Subchapter G, Chapter 393, Finance Code, is
29	29	amended by adding Section 393.629 to read as follows:
30	30	Sec. 393.629. RESTRICTION ON CHARGES CHARGED IN CONNECTION
31	31	WITH DEFERRED PRESENTMENT TRANSACTIONS. (a) For purposes of this
32	32	section, the annual percentage rate of an extension of consumer
33	33	credit in the form of a deferred presentment transaction is
34	34	calculated including the total charges charged to the consumer in
35	35	connection with the extension of consumer credit, including
36	36	interest, lender charges, and any fees or any other valuable
37	37	consideration received by the credit access business or a
38	38	representative of the credit access business.
39	39	(b) The annual percentage rate of an extension of consumer
40	40	credit in the form of a deferred presentment transaction that a
41	41	credit access business obtains for a consumer or assists a consumer
42	42	in obtaining may not exceed:
43	43	(1) for a deferred presentment transaction that
44	44	advances more than $300, 38.5 percent; and
45	45	(2) for a deferred presentment transaction that
46	46	advances not more than $300, 36 percent.
47	47	(c) A deferred presentment transaction entered into in
48	48	violation of this section is void and unenforceable.
49	49	SECTION 3. Sections 342.606 and 393.629, Finance Code, as
50	50	added by this Act, apply only to a loan or extension of consumer
51	51	credit, as applicable, made on or after the effective date of this
52	52	Act. A loan or extension of consumer credit made before the
53	53	effective date of this Act is governed by the law in effect on the
54	54	date the loan or extension of consumer credit was made, and the
55	55	former law is continued in effect for that purpose. For purposes of
56	56	this section, a refinance of a loan or extension of consumer credit
57	57	is considered made on the date the loan or extension of consumer
58	58	credit being refinanced was made.
59	59	SECTION 4. This Act takes effect September 1, 2025.