Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Impact
The proposed legislation is set to enhance consumer protections by enforcing stricter regulations on credit services organizations. For example, it mandates that credit access businesses must maintain thorough records for extensions of credit and establishes penalties for violations. Furthermore, the bill does not preempt municipal ordinances, thus ensuring that local governments can impose more stringent regulations if deemed necessary. This change is likely to encourage fairer treatment of consumers, especially vulnerable populations who often depend on such financial services.
Summary
House Bill 768 introduces significant amendments to the Finance Code in Texas, specifically aimed at regulating credit services organizations and the extensions of consumer credit they facilitate. The bill expands the definitions related to credit services and introduces clear parameters under which credit access businesses can operate. Key forms of extensions of consumer credit are specified, including single-payment and multiple-payment deferred presentment transactions, as well as motor vehicle title loans, thus providing clarity in an area that significantly impacts consumers seeking credit solutions.
Contention
However, the bill has raised concerns among various stakeholders regarding potential impacts on access to credit. Critics argue that implementing strict regulatory controls might decrease the availability of consumer credit options, which could disproportionately affect low-income consumers who rely on short-term loans for urgent financial needs. The balance between protecting consumers and ensuring their access to credit remains a point of contention in legislative discussions surrounding HB 768.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to a restriction on total charges charged for extensions of consumer credit that a credit services organization obtains for a consumer or assists a consumer in obtaining.
Relating to a restriction on total charges charged for certain extensions of consumer credit that are facilitated by credit access businesses and entered into by consumers residing in disaster areas.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to catalytic converters, including criminal conduct involving catalytic converters; providing an administrative penalty; creating a criminal offense; increasing a criminal penalty; increasing a fee.
Relating to catalytic converters, including criminal conduct involving catalytic converters; providing an administrative penalty; creating a criminal offense; increasing a criminal penalty; increasing a fee.
Relating to certain criminal conduct and organizations that threaten the security of this state and its residents and borders; increasing criminal penalties.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.
Relating to extensions of consumer credit a credit services organization obtains for a consumer or assists a consumer in obtaining; providing a civil penalty.