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A BILL TO BE ENTITLED
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AN ACT
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relating to a restriction on total charges charged for certain |
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extensions of consumer credit that are facilitated by credit access |
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businesses and entered into by consumers residing in disaster |
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areas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 393.602(b), Finance Code, is amended to |
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read as follows: |
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(b) Subject to Section 393.629, a [A] credit access business |
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may assess fees for its services as agreed to between the parties. |
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A credit access business fee may be calculated daily, biweekly, |
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monthly, or on another periodic basis. A credit access business is |
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permitted to charge amounts allowed by other laws, as applicable. A |
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fee may not be charged unless it is disclosed. |
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SECTION 2. Subchapter G, Chapter 393, Finance Code, is |
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amended by adding Section 393.629 to read as follows: |
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Sec. 393.629. RESTRICTION ON CHARGES CHARGED IN CONNECTION |
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WITH DEFERRED PRESENTMENT TRANSACTIONS OF CONSUMERS IN DISASTER |
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AREAS. (a) In this section: |
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(1) "Designated disaster period" means the period |
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beginning on the date of the proclamation or executive order of the |
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governor declaring the disaster and ending on the 30th day after the |
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date the disaster declaration expires or is terminated. |
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(2) "Disaster area" means an area of this state that is |
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subject to a declaration of disaster by the governor under Section |
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418.014, Government Code. |
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(b) The annual percentage rate of an extension of consumer |
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credit in the form of a deferred presentment transaction that is |
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entered into by a consumer residing in a disaster area and that a |
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credit access business obtains for the consumer or assists the |
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consumer in obtaining may not exceed 30 percent during the |
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designated disaster period and the two-year period immediately |
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following that period. |
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(c) For purposes of this section, the annual percentage rate |
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of an extension of consumer credit in the form of a deferred |
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presentment transaction is calculated including the total charges |
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charged to the consumer in connection with the extension of |
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consumer credit, including interest, lender charges, and any fees |
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or any other valuable consideration received by the credit access |
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business or a representative of the credit access business. |
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SECTION 3. Section 393.629, Finance Code, as added by this |
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Act, applies only to an extension of consumer credit made on or |
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after the effective date of this Act. An extension of consumer |
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credit made before the effective date of this Act is governed by the |
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law in effect on the date the extension of consumer credit was made, |
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and the former law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2021. |