By Eiland H.B. No. 744
76R10154 WP-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to revolving credit accounts.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 346.101(a), Finance Code, is amended to
1-5 read as follows:
1-6 (a) A revolving credit account may provide for interest on
1-7 an account at an annual rate[:]
1-8 [(1)] that does not exceed[:]
1-9 [(A)] 18 percent a year [on that part of the
1-10 average daily balance of the account that does not exceed $1,500;]
1-11 [(B) 12 percent a year on that part of the
1-12 average daily balance of the account that exceeds $1,500 but does
1-13 not exceed $2,500; and]
1-14 [(C) 10 percent a year on that part of the
1-15 average daily balance of the account that exceeds $2,500; or]
1-16 [(2) that does not exceed 14.4 percent a year on the
1-17 entire average daily balance of the account].
1-18 SECTION 2. Section 346.103, Finance Code, is amended to read
1-19 as follows:
1-20 Sec. 346.103. FEES. (a) The following fees may be charged
1-21 to or collected from a customer in connection with an account under
1-22 this chapter:
1-23 (1) an annual fee not to exceed:
1-24 (A) $50 a year on an account with a credit limit
2-1 of $5,000 or less;
2-2 (B) $75 a year on an account with a credit limit
2-3 exceeding $5,000 but not exceeding $25,000; and
2-4 (C) $125 a year on an account with a credit
2-5 limit exceeding $25,000;
2-6 (2) a late charge not to exceed the lesser of $15 or
2-7 five percent of the payment due after the payment continues unpaid
2-8 for 10 days or more after the date the payment is due, including
2-9 Sundays and holidays;
2-10 (3) a cash advance charge not to exceed the greater of
2-11 $2 or two percent of the cash advance;
2-12 (4) a returned check fee as provided for a loan
2-13 agreement under Chapter 342 by Section 1, Chapter 617, Acts of the
2-14 68th Legislature, Regular Session, 1983 (Article 9022, Vernon's
2-15 Texas Civil Statutes); and
2-16 (5) a fee for exceeding a credit limit not to exceed
2-17 the greater of $15 or five percent of the amount by which the
2-18 credit limit is exceeded.
2-19 (b) A creditor may not charge, contract for, or receive
2-20 interest on fees authorized under this section. [In connection
2-21 with a revolving credit account, a person may not charge or collect
2-22 from a customer a fee that is not authorized by statute.]
2-23 SECTION 3. Section 346.103, Finance Code, is amended to read
2-24 as follows:
2-25 Sec. 346.103. FEES. (a) The following fees may be charged
2-26 to or collected from a customer in connection with an account under
2-27 this chapter:
3-1 (1) an annual fee not to exceed:
3-2 (A) $50 a year on an account with a credit limit
3-3 of $5,000 or less;
3-4 (B) $75 a year on an account with a credit limit
3-5 exceeding $5,000 but not exceeding $25,000; and
3-6 (C) $125 a year on an account with a credit
3-7 limit exceeding $25,000;
3-8 (2) a late charge not to exceed the lesser of $15 or
3-9 five percent of the payment due after the payment continues unpaid
3-10 for 10 days or more after the date the payment is due, including
3-11 Sundays and holidays;
3-12 (3) a cash advance charge not to exceed the greater of
3-13 $2 or two percent of the cash advance;
3-14 (4) a returned check fee as provided for a loan
3-15 agreement under Chapter 3A, Title 79, Revised Statutes, by Section
3-16 1, Chapter 617, Acts of the 68th Legislature, Regular Session, 1983
3-17 (Article 9022, Vernon's Texas Civil Statutes); and
3-18 (5) a fee for exceeding a credit limit not to exceed
3-19 the greater of $15 or five percent of the amount by which the
3-20 credit limit is exceeded.
3-21 (b) A creditor may not charge, contract for, or receive
3-22 interest on fees authorized under this section. [In connection
3-23 with a revolving credit account, a person may not charge or collect
3-24 from a customer a fee that is not authorized by statute.]
3-25 SECTION 4. Section 345.157, Finance Code, is amended by
3-26 amending Subsection (b) and adding Subsection (d) to read as
3-27 follows:
4-1 (b) The amount of a delinquency charge may not exceed $15
4-2 [$10].
4-3 (d) The holder shall remit 50 cents of each delinquency
4-4 charge in excess of $10 collected under this section to the
4-5 comptroller, in the time and manner established by the comptroller,
4-6 for deposit to the credit of an account in the general revenue
4-7 fund. One-half of the money in the account may be appropriated
4-8 only to finance research conducted by the finance commission under
4-9 Section 11.305 and the other one-half of the money in the account
4-10 may be appropriated only to finance educational activities and
4-11 counseling services under Section 394.001.
4-12 SECTION 5. Section 303.009(e), Finance Code, is repealed.
4-13 SECTION 6. (a) Except as provided by Subsections (b) and
4-14 (c) of this section, this Act takes effect September 1, 1999.
4-15 (b) Sections 2 and 5 of this Act take effect only if the Act
4-16 of the 76th Legislature, Regular Session, 1999, relating to
4-17 nonsubstantive additions to and corrections in enacted codes takes
4-18 effect.
4-19 (c) Section 3 of this Act takes effect only if the Act of
4-20 the 76th Legislature, Regular Session, 1999, relating to
4-21 nonsubstantive additions to and corrections in enacted codes does
4-22 not take effect.
4-23 SECTION 7. The importance of this legislation and the
4-24 crowded condition of the calendars in both houses create an
4-25 emergency and an imperative public necessity that the
4-26 constitutional rule requiring bills to be read on three several
4-27 days in each house be suspended, and this rule is hereby suspended.