1-1 By: Eiland (Senate Sponsor - Bernsen) H.B. No. 744
1-2 (In the Senate - Received from the House April 16, 1999;
1-3 April 19, 1999, read first time and referred to Committee on
1-4 Economic Development; May 5, 1999, reported favorably by the
1-5 following vote: Yeas 6, Nays 0; May 5, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to revolving credit accounts.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 346.101(a), Finance Code, is amended to
1-11 read as follows:
1-12 (a) A revolving credit account may provide for interest on
1-13 an account at an annual rate[:]
1-14 [(1)] that does not exceed[:]
1-15 [(A)] 18 percent a year [on that part of the
1-16 average daily balance of the account that does not exceed $1,500;]
1-17 [(B) 12 percent a year on that part of the
1-18 average daily balance of the account that exceeds $1,500 but does
1-19 not exceed $2,500; and]
1-20 [(C) 10 percent a year on that part of the
1-21 average daily balance of the account that exceeds $2,500; or]
1-22 [(2) that does not exceed 14.4 percent a year on the
1-23 entire average daily balance of the account].
1-24 SECTION 2. Section 346.103, Finance Code, is amended to read
1-25 as follows:
1-26 Sec. 346.103. FEES. (a) The following fees may be charged
1-27 to or collected from a customer in connection with an account under
1-28 this chapter:
1-29 (1) an annual fee not to exceed:
1-30 (A) $50 a year on an account with a credit limit
1-31 of $5,000 or less;
1-32 (B) $75 a year on an account with a credit limit
1-33 exceeding $5,000 but not exceeding $25,000; and
1-34 (C) $125 a year on an account with a credit
1-35 limit exceeding $25,000;
1-36 (2) a late charge not to exceed the lesser of $15 or
1-37 five percent of the payment due after the payment continues unpaid
1-38 for 10 days or more after the date the payment is due, including
1-39 Sundays and holidays;
1-40 (3) a cash advance charge not to exceed the greater of
1-41 $2 or two percent of the cash advance;
1-42 (4) a returned check fee as provided for a loan
1-43 agreement under Chapter 342 by Section 1, Chapter 617, Acts of the
1-44 68th Legislature, Regular Session, 1983 (Article 9022, Vernon's
1-45 Texas Civil Statutes); and
1-46 (5) a fee for exceeding a credit limit not to exceed
1-47 the greater of $15 or five percent of the amount by which the
1-48 credit limit is exceeded.
1-49 (b) A creditor may not charge, contract for, or receive
1-50 interest on fees authorized under this section. [In connection
1-51 with a revolving credit account, a person may not charge or collect
1-52 from a customer a fee that is not authorized by statute.]
1-53 SECTION 3. Section 346.103, Finance Code, is amended to read
1-54 as follows:
1-55 Sec. 346.103. FEES. (a) The following fees may be charged
1-56 to or collected from a customer in connection with an account under
1-57 this chapter:
1-58 (1) an annual fee not to exceed:
1-59 (A) $50 a year on an account with a credit limit
1-60 of $5,000 or less;
1-61 (B) $75 a year on an account with a credit limit
1-62 exceeding $5,000 but not exceeding $25,000; and
1-63 (C) $125 a year on an account with a credit
1-64 limit exceeding $25,000;
2-1 (2) a late charge not to exceed the lesser of $15 or
2-2 five percent of the payment due after the payment continues unpaid
2-3 for 10 days or more after the date the payment is due, including
2-4 Sundays and holidays;
2-5 (3) a cash advance charge not to exceed the greater of
2-6 $2 or two percent of the cash advance;
2-7 (4) a returned check fee as provided for a loan
2-8 agreement under Chapter 3A, Title 79, Revised Statutes, by Section
2-9 1, Chapter 617, Acts of the 68th Legislature, Regular Session, 1983
2-10 (Article 9022, Vernon's Texas Civil Statutes); and
2-11 (5) a fee for exceeding a credit limit not to exceed
2-12 the greater of $15 or five percent of the amount by which the
2-13 credit limit is exceeded.
2-14 (b) A creditor may not charge, contract for, or receive
2-15 interest on fees authorized under this section. [In connection
2-16 with a revolving credit account, a person may not charge or collect
2-17 from a customer a fee that is not authorized by statute.]
2-18 SECTION 4. Section 345.157, Finance Code, is amended by
2-19 amending Subsection (b) and adding Subsection (d) to read as
2-20 follows:
2-21 (b) The amount of a delinquency charge may not exceed $15
2-22 [$10].
2-23 (d) The holder shall remit 50 cents of each delinquency
2-24 charge in excess of $10 collected under this section to the
2-25 comptroller, in the time and manner established by the comptroller,
2-26 for deposit to the credit of an account in the general revenue
2-27 fund. One-half of the money in the account may be appropriated
2-28 only to finance research conducted by the finance commission under
2-29 Section 11.305 and the other one-half of the money in the account
2-30 may be appropriated only to finance educational activities and
2-31 counseling services under Section 394.001.
2-32 SECTION 5. Section 303.009(e), Finance Code, is repealed.
2-33 SECTION 6. (a) Except as provided by Subsections (b) and
2-34 (c) of this section, this Act takes effect September 1, 1999.
2-35 (b) Sections 2 and 5 of this Act take effect only if the Act
2-36 of the 76th Legislature, Regular Session, 1999, relating to
2-37 nonsubstantive additions to and corrections in enacted codes takes
2-38 effect.
2-39 (c) Section 3 of this Act takes effect only if the Act of
2-40 the 76th Legislature, Regular Session, 1999, relating to
2-41 nonsubstantive additions to and corrections in enacted codes does
2-42 not take effect.
2-43 SECTION 7. The importance of this legislation and the
2-44 crowded condition of the calendars in both houses create an
2-45 emergency and an imperative public necessity that the
2-46 constitutional rule requiring bills to be read on three several
2-47 days in each house be suspended, and this rule is hereby suspended.
2-48 * * * * *