89R6240 MLH-D
By: Creighton S.B. No. 1906
A BILL TO BE ENTITLED
AN ACT
relating to increasing the interest rate of certain consumer loans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 342.201(e), Finance Code, is amended to
read as follows:
(e) A loan contract under this chapter that is not secured
by real property may provide for a rate or amount of interest
computed using the true daily earnings method or the scheduled
installment earnings method that does not exceed:
(1) 36 [30] percent a year on that part of the cash
advance that is less than or equal to the amount computed under
Subchapter C, Chapter 341, using the reference base amount of $500;
(2) 30 [24] percent a year on that part of the cash
advance that is more than the amount computed for Subdivision (1)
but less than or equal to an amount computed under Subchapter C,
Chapter 341, using the reference base amount of $1,050; and
(3) 24 [18] percent a year on that part of the cash
advance that is more than the amount computed for Subdivision (2)
but less than or equal to an amount computed under Subchapter C,
Chapter 341, using the reference base amount of $2,500.
SECTION 2. The change in law made by this Act applies only
to a loan made on or after the effective date of this Act. A loan
made before the effective date of this Act is governed by the law in
effect on the date the loan was made, and the former law is
continued in effect for that purpose. For purposes of this section,
a refinance or renewal of a loan is considered made on the date the
loan being refinanced or renewed was made.
SECTION 3. This Act takes effect September 1, 2025.