79R11485 DWS-D


By:  Burnam, Dunnam                                               H.B. No. 1089

Substitute the following for H.B. No. 1089:                                   

By:  Solomons                                                 C.S.H.B. No. 1089



A BILL TO BE ENTITLED

AN ACT

relating to information provided by a creditor under a revolving 
credit account concerning payment of the balance amount.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 346, Finance Code, is 
amended by adding Section 346.207 to read as follows:
	Sec. 346.207.  MINIMUM PAYMENT NOTICE.  (a)  This section 
applies to a periodic bill delivered to the customer under a 
revolving credit account that allows the customer to make a minimum 
payment on the account that is less than the entire outstanding 
balance.
	(b)  The creditor shall include on the bill, at a location 
directly below the location where the minimum payment is stated, 
the following warning: "Making only the minimum payment will 
increase the amount of interest you pay and the time it takes to 
repay your balance."
	(c)  This section applies to an account with a customer who 
is a resident of this state regardless of the location of the 
creditor.  Notwithstanding any other state law, an agreement made 
in connection with the account is void to the extent the agreement 
waives the application of this section or applies the law of a 
jurisdiction other than this state that is inconsistent with this 
section.
	SECTION 2.  This Act applies only to an account agreement 
entered into, amended, or renewed on or after the effective date of 
this Act.
	SECTION 3.  This Act takes effect September 1, 2005.