79R925 DWS-D

By:  Eissler                                                      H.B. No. 42 



A BILL TO BE ENTITLED

AN ACT

relating to application of a payment under a credit card account.             
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter H, Chapter 345, Finance Code, is 
amended by adding Section 345.358 to read as follows:
	Sec. 345.358.  APPLICATION OF PAYMENT ON RETAIL CREDIT CARD 
ARRANGEMENT.  If a retail credit card agreement provides that 
different rates of interest or time price differential apply to 
different parts of the balance on the account, the holder shall 
apply any payment received on the account first to the part of the 
balance bearing the highest rate.
	SECTION 2.  Subchapter C, Chapter 346, Finance Code, is 
amended by adding Section 346.207 to read as follows:
	Sec. 346.207.  APPLICATION OF PAYMENT.  If an account 
agreement under this chapter under which a credit card may be used 
provides that different rates of interest apply to different parts 
of the balance on the account, the holder shall apply any payment 
received on the account first to the part of the balance bearing the 
highest rate.
	SECTION 3.  This Act applies only to an account agreement 
entered into, amended, or renewed on or after the effective date of 
this Act.
	SECTION 4.  This Act takes effect September 1, 2005.