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House Bill 2594 |
House Author: Truitt et al. |
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Effective: 1-1-12 |
Senate Sponsor: Carona et al. |
House Bill 2594 amends the Finance Code to set out provisions relating to the licensing and regulation of a credit access business, which is defined as a credit services organization that obtains for a consumer or assists a consumer in obtaining an extension of consumer credit in the form of a deferred presentment transaction or a motor vehicle title loan. The bill authorizes a credit access business to assess fees for its services as agreed to between the parties and prohibits a fee from being charged unless it is disclosed.
House Bill 2594 requires a credit services organization to obtain a license for each location at which the organization operates as a credit access business in performing the services described above and sets out provisions relating to the application for and issuance of that license. The bill requires the filing of a surety bond in a specified amount, if so required by the consumer credit commissioner, or the maintenance of a surety account held in trust in lieu of the surety bond filing; requires the commissioner to conduct an investigation of the application before issuing a license; requires the commissioner to approve an application and issue a license on a finding that an applicant meets certain financial criteria and sets deadlines for the approval or denial of the application; provides for the disposition of the application and investigation fees on denial of the application; requires each license to state the name of the license holder and the address associated with the license; requires a display of the license at the place of business stated on the license; requires the license holder to maintain minimum net assets as specified; requires payment of an annual license fee and provides for the expiration of the license on failure to pay that fee; establishes grounds for a license suspension or revocation; requires the filing of a decision regarding a suspended or revoked license and the associated evidence in the commissioner's public records; provides for the reinstatement of a suspended license under certain conditions and for the issuance of a new license after revocation; provides for the voluntary surrender of a license; establishes the effect of a license being suspended, revoked, or surrendered; requires a license holder to notify the commissioner before moving an office from the location specified on the license; requires commissioner approval for the transfer or assignment of a license; vests the duty to administer these licensing provisions in the office of the consumer credit commissioner; prohibits providing or advertising the applicable services without a license; establishes restrictions on off-site advertising; requires compliance with federal laws and regulations applicable to the extension of consumer credit to military borrowers; makes certain debt collection practices that are violations of other state law violations of these licensing provisions; and requires the filing of a credit access business's quarterly report with the consumer credit commissioner and the payment by each credit access business or license holder of an annual assessment for the Texas Financial Education Endowment to improve consumer credit, financial education, and asset-building opportunities in Texas. The bill authorizes the Finance Commission of Texas to adopt rules for purposes relating to the licensing and regulation of credit access businesses.
House Bill 2594 requires the consumer credit commissioner to assess an administrative penalty against a credit access business that knowingly and wilfully violates or causes a violation of statutory provisions relating to credit services organizations or a rule adopted under those provisions.