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A BILL TO BE ENTITLED
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AN ACT
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relating to fees paid to a third party in connection with certain |
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extensions of consumer credit. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 302, Finance Code, is |
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amended by adding Section 302.003 to read as follows: |
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Sec. 302.003. PROHIBITION ON THIRD-PARTY FEES TO ARRANGE OR |
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GUARANTEE CERTAIN EXTENSIONS OF CONSUMER CREDIT. (a) A fee paid or |
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to be paid to a third party to assist a consumer in the transacting, |
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arranging, guaranteeing, or negotiating of an extension of credit |
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may not be contracted for, charged, or received by a creditor or |
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third party in connection with the extension of credit if: |
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(1) the extension of credit is secured by a |
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non-purchase money security interest in personal property or is |
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unsecured; and |
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(2) the proceeds of the extension of credit are used |
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for personal, family, or household purposes. |
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(b) The amount of a fee contracted for, charged, or received |
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in violation of Subsection (a) is considered interest for usury |
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purposes under state law. |
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SECTION 2. The changes in law made by this Act apply only to |
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an extension of consumer credit made on or after the effective date |
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of this Act. |
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SECTION 3. This Act takes effect September 1, 2021. |