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.