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House Bill 2592 |
House Author: Truitt et al. |
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Effective: 1-1-12 |
Senate Sponsor: Carona |
House Bill 2592 amends the Finance Code to require a credit access business to post in a conspicuous location in its place of business and on any business Internet website it maintains a schedule of all fees to be charged for services performed in connection with payday loans or auto title loans; directory information for the Office of Consumer Credit Commissioner, including the number for the office's consumer helpline; and an advisory notice that such loans are not intended to meet long-term needs and that refinancing rather than paying the debt in full when due will incur additional charges. The bill requires a credit access business, before performing loan services, to provide to a consumer a disclosure adopted by the Finance Commission of Texas regarding the interest, fees, and annual percentage rates to be charged on a payday or auto title loan relative to the interest, fees, and annual percentage rates charged for alternative forms of consumer debt and other information relating to the effect of renewing or refinancing such payday or auto title loans for periods of varying duration and the typical payment patterns in the repayment of such loans. A credit access business that obtains or assists a consumer in obtaining an auto title loan also must provide a notice warning of the consequences of a default on such a loan. The bill authorizes the consumer credit commissioner to assess an administrative penalty against a credit access business that knowingly or wilfully violates the law.