87R4833 MLH-D
 
  By: Pacheco H.B. No. 1937
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the maximum permitted rate of interest, sum of fees, and
  other amounts that may be charged in connection with deferred
  presentment transactions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter M, Chapter 342, Finance Code, is
  amended by adding Section 342.606 to read as follows:
         Sec. 342.606.  MAXIMUM INTEREST RATES. (a)  Unless a lower
  rate of interest is otherwise provided by law, the maximum rate or
  amount of interest that may be contracted for, charged, or received
  from a borrower for a deferred presentment transaction is 36
  percent a year.
         (b)  A deferred presentment transaction entered into in
  violation of this section is void and unenforceable.
         SECTION 2.  Subchapter G, Chapter 393, Finance Code, is
  amended by adding Section 393.629 to read as follows:
         Sec. 393.629.  RESTRICTION ON CHARGES CHARGED IN CONNECTION
  WITH DEFERRED PRESENTMENT TRANSACTIONS.  (a)  For purposes of this
  section, the annual percentage rate of an extension of consumer
  credit in the form of a deferred presentment transaction is
  calculated including the total charges charged to the consumer in
  connection with the extension of consumer credit, including
  interest, lender charges, and any fees or any other valuable
  consideration received by the credit access business or a
  representative of the credit access business.
         (b)  The annual percentage rate of an extension of consumer
  credit in the form of a deferred presentment transaction that a
  credit access business obtains for a consumer or assists a consumer
  in obtaining may not exceed 36 percent.
         (c)  A deferred presentment transaction entered into in
  violation of this section is void and unenforceable.
         SECTION 3.  Sections 342.606 and 393.629, Finance Code, as
  added by this Act, apply only to a loan or extension of consumer
  credit, as applicable, made on or after the effective date of this
  Act. A loan or extension of consumer credit made before the
  effective date of this Act is governed by the law in effect on the
  date the loan or extension of consumer credit was made, and the
  former law is continued in effect for that purpose. For purposes of
  this section, a refinance of a loan or extension of consumer credit
  is considered made on the date the loan or extension of consumer
  credit being refinanced was made.
         SECTION 4.  This Act takes effect September 1, 2021.