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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 extensions |
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of consumer credit that a credit services organization obtains for |
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a consumer or assists a consumer in obtaining. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 393, Finance Code, is |
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amended by adding Section 393.308 to read as follows: |
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Sec. 393.308. RESTRICTION ON CHARGES CHARGED IN CONNECTION |
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WITH EXTENSIONS OF CONSUMER CREDIT. (a) For purposes of this |
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section, the annual percentage rate of an extension of consumer |
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credit is calculated including the total charges charged to the |
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consumer in connection with the extension of consumer credit, |
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including interest, lender charges, and any fees or any other |
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valuable consideration received by the credit services |
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organization or a representative of the organization. |
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(b) The annual percentage rate of an extension of consumer |
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credit that a credit services organization obtains for a consumer |
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or assists a consumer in obtaining may not exceed 36 percent. |
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SECTION 2. Section 393.602(b), Finance Code, is amended to |
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read as follows: |
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(b) Subject to Section 393.308, 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 3. Section 393.308, 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. |