By Eiland H.B. No. 744
76R3516 WP-F
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 the greater of the highest
1-9 authorized rate for an installment loan subject to Chapter 342 or[:]
1-10 [(A)] 18 percent a year [on that part of the
1-11 average daily balance of the account that does not exceed $1,500;]
1-12 [(B) 12 percent a year on that part of the
1-13 average daily balance of the account that exceeds $1,500 but does
1-14 not exceed $2,500; and]
1-15 [(C) 10 percent a year on that part of the
1-16 average daily balance of the account that exceeds $2,500; or]
1-17 [(2) that does not exceed 14.4 percent a year on the
1-18 entire average daily balance of the account].
1-19 SECTION 2. Section 346.103, Finance Code, is amended to read
1-20 as follows:
1-21 Sec. 346.103. FEES. The following fees may be charged to or
1-22 collected from a customer in connection with an account under this
1-23 chapter:
1-24 (1) an annual fee not to exceed:
2-1 (A) $50 a year on an account with a credit limit
2-2 of $5,000 or less;
2-3 (B) $75 a year on an account with a credit limit
2-4 exceeding $5,000 but not exceeding $25,000; and
2-5 (C) $125 a year on an account with a credit
2-6 limit exceeding $25,000;
2-7 (2) a late charge not to exceed the greater of $15 or
2-8 five percent of the payment due after the payment continues unpaid
2-9 for 10 days or more after the date the payment is due, including
2-10 Sundays and holidays;
2-11 (3) a cash advance charge not to exceed the greater of
2-12 $2 or two percent of the cash advance;
2-13 (4) a returned check fee as provided for a loan
2-14 agreement under Chapter 342 by Section 1, Chapter 617, Acts of the
2-15 68th Legislature, Regular Session, 1983 (Article 9022, Vernon's
2-16 Texas Civil Statutes); and
2-17 (5) a fee for exceeding a credit limit not to exceed
2-18 the greater of $15 or five percent of the amount by which the
2-19 credit limit is exceeded [In connection with a revolving credit
2-20 account, a person may not charge or collect from a customer a fee
2-21 that is not authorized by statute].
2-22 SECTION 3. Section 346.101(a), Finance Code, is amended to
2-23 read as follows:
2-24 (a) A revolving credit account may provide for interest on
2-25 an account at an annual rate[:]
2-26 [(1)] that does not exceed the greater of the highest
2-27 authorized rate for an installment loan subject to Chapter 3A,
3-1 Title 79, Revised Statutes, or[:]
3-2 [(A)] 18 percent a year [on that part of the
3-3 average daily balance of the account that does not exceed $1,500;]
3-4 [(B) 12 percent a year on that part of the
3-5 average daily balance of the account that exceeds $1,500 but does
3-6 not exceed $2,500; and]
3-7 [(C) 10 percent a year on that part of the
3-8 average daily balance of the account that exceeds $2,500; or]
3-9 [(2) that does not exceed 14.4 percent a year on the
3-10 entire average daily balance of the account].
3-11 SECTION 4. Section 346.103, Finance Code, is amended to read
3-12 as follows:
3-13 Sec. 346.103. FEES. The following fees may be charged to or
3-14 collected from a customer in connection with an account under this
3-15 chapter:
3-16 (1) an annual fee not to exceed:
3-17 (A) $50 a year on an account with a credit limit
3-18 of $5,000 or less;
3-19 (B) $75 a year on an account with a credit limit
3-20 exceeding $5,000 but not exceeding $25,000; and
3-21 (C) $125 a year on an account with a credit
3-22 limit exceeding $25,000;
3-23 (2) a late charge not to exceed the greater of $15 or
3-24 five percent of the payment due after the payment continues unpaid
3-25 for 10 days or more after the date the payment is due, including
3-26 Sundays and holidays;
3-27 (3) a cash advance charge not to exceed the greater of
4-1 $2 or two percent of the cash advance;
4-2 (4) a returned check fee as provided for a loan
4-3 agreement under Chapter 3A, Title 79, Revised Statutes, by Section
4-4 1, Chapter 617, Acts of the 68th Legislature, Regular Session, 1983
4-5 (Article 9022, Vernon's Texas Civil Statutes); and
4-6 (5) a fee for exceeding a credit limit not to exceed
4-7 the greater of $15 or five percent of the amount by which the
4-8 credit limit is exceeded [In connection with a revolving credit
4-9 account, a person may not charge or collect from a customer a fee
4-10 that is not authorized by statute].
4-11 SECTION 5. (a) Except as provided by Subsections (b) and
4-12 (c) of this section, this Act takes effect September 1, 1999.
4-13 (b) Sections 1 and 2 of this Act take effect only if the Act
4-14 of the 76th Legislature, Regular Session, 1999, relating to
4-15 nonsubstantive additions to and corrections in enacted codes takes
4-16 effect.
4-17 (c) Sections 3 and 4 of this Act take effect only if the Act
4-18 of the 76th Legislature, Regular Session, 1999, relating to
4-19 nonsubstantive additions to and corrections in enacted codes does
4-20 not take effect.
4-21 SECTION 6. The importance of this legislation and the
4-22 crowded condition of the calendars in both houses create an
4-23 emergency and an imperative public necessity that the
4-24 constitutional rule requiring bills to be read on three several
4-25 days in each house be suspended, and this rule is hereby suspended.