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.
2-21 (c) A customer's monthly statement must contain the
2-22 following notice printed or typed in at least 10-point type that is
2-23 boldfaced, capitalized, underlined, or otherwise conspicuously set
2-24 out from the surrounding written material: "A LATE CHARGE OF FIVE
2-25 PERCENT OF THE PAYMENT DUE OR A MAXIMUM OF $15 WILL BE ASSESSED FOR
2-26 A PAYMENT MADE 10 DAYS OR MORE AFTER THE DATE PAYMENT OF THIS BILL
2-27 IS DUE." [In connection with a revolving credit account, a person
3-1 may not charge or collect from a customer a fee that is not
3-2 authorized by statute.]
3-3 SECTION 3. Section 346.103, Finance Code, is amended to read
3-4 as follows:
3-5 Sec. 346.103. FEES. (a) The following fees may be charged
3-6 to or collected from a customer in connection with an account under
3-7 this chapter:
3-8 (1) an annual fee not to exceed:
3-9 (A) $50 a year on an account with a credit limit
3-10 of $5,000 or less;
3-11 (B) $75 a year on an account with a credit limit
3-12 exceeding $5,000 but not exceeding $25,000; and
3-13 (C) $125 a year on an account with a credit
3-14 limit exceeding $25,000;
3-15 (2) a late charge not to exceed the lesser of $15 or
3-16 five percent of the payment due after the payment continues unpaid
3-17 for 10 days or more after the date the payment is due, including
3-18 Sundays and holidays;
3-19 (3) a cash advance charge not to exceed the greater of
3-20 $2 or two percent of the cash advance;
3-21 (4) a returned check fee as provided for a loan
3-22 agreement under Chapter 3A, Title 79, Revised Statutes, by Section
3-23 1, Chapter 617, Acts of the 68th Legislature, Regular Session, 1983
3-24 (Article 9022, Vernon's Texas Civil Statutes); and
3-25 (5) a fee for exceeding a credit limit not to exceed
3-26 the greater of $15 or five percent of the amount by which the
3-27 credit limit is exceeded.
4-1 (b) A creditor may not charge, contract for, or receive
4-2 interest on fees authorized under this section. [In connection
4-3 with a revolving credit account, a person may not charge or collect
4-4 from a customer a fee that is not authorized by statute.]
4-5 SECTION 4. Section 345.157, Finance Code, is amended by
4-6 amending Subsection (b) and adding Subsections (d), (e), and (f) to
4-7 read as follows:
4-8 (b) The amount of a delinquency charge may not exceed $15
4-9 [$10].
4-10 (d) The holder shall remit 50 cents of each delinquency
4-11 charge in excess of $10 collected under this section to the
4-12 comptroller, in the time and manner established by the comptroller,
4-13 for deposit to the credit of an account in the general revenue
4-14 fund. One-half of the money in the account may be appropriated
4-15 only to finance research conducted by the finance commission under
4-16 Section 11.305 and the other one-half of the money in the account
4-17 may be appropriated only to finance educational activities and
4-18 counseling services under Section 394.001.
4-19 (e) A customer's monthly statement must contain the
4-20 following notice printed or typed in at least 10-point type that is
4-21 boldfaced, capitalized, underlined, or otherwise conspicuously set
4-22 out from the surrounding written material: "A DELINQUENCY CHARGE
4-23 OF $15 MAY BE ASSESSED FOR A PAYMENT THAT IS IN DEFAULT FOR A
4-24 PERIOD THAT IS LONGER THAN 21 DAYS."
4-25 (f) If the commissioner determines that a retail seller or
4-26 creditor that was operating under this subchapter on September 1,
4-27 1999, and that charges a delinquency charge in excess of $10, moved
5-1 its credit operations out of this state after September 1, 1999, in
5-2 a manner that results in the retail seller's or creditor's retail
5-3 charge agreements not being subject to this subchapter, the
5-4 commissioner shall collect from the retail seller or creditor an
5-5 amount equal to 25 cents for each delinquency charge in excess of
5-6 $10 collected during the 12-month period preceding the date of the
5-7 move.
5-8 SECTION 5. Section 303.009(e), Finance Code, is repealed.
5-9 SECTION 6. (a) Except as provided by Subsections (b) and
5-10 (c) of this section, this Act takes effect September 1, 1999.
5-11 (b) Sections 2 and 5 of this Act take effect only if the Act
5-12 of the 76th Legislature, Regular Session, 1999, relating to
5-13 nonsubstantive additions to and corrections in enacted codes takes
5-14 effect.
5-15 (c) Section 3 of this Act takes effect only if the Act of
5-16 the 76th Legislature, Regular Session, 1999, relating to
5-17 nonsubstantive additions to and corrections in enacted codes does
5-18 not take effect.
5-19 SECTION 7. The importance of this legislation and the
5-20 crowded condition of the calendars in both houses create an
5-21 emergency and an imperative public necessity that the
5-22 constitutional rule requiring bills to be read on three several
5-23 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 744 was passed by the House on April
15, 1999, by a non-record vote; that the House refused to concur in
Senate amendments to H.B. No. 744 on May 20, 1999, and requested
the appointment of a conference committee to consider the
differences between the two houses; and that the House adopted the
conference committee report on H.B. No. 744 on May 30, 1999, by a
non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 744 was passed by the Senate, with
amendments, on May 18, 1999, by a viva-voce vote; at the request of
the House, the Senate appointed a conference committee to consider
the differences between the two houses; and that the Senate adopted
the conference committee report on H.B. No. 744 on May 30, 1999, by
a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor