By: Shapleigh S.B. No. 753

(In the Senate - Filed February 19, 2007; March 6, 2007, read first time and referred to Committee on State Affairs; April 16, 2007, rereferred to Committee on Business and Commerce; May 8, 2007, reported adversely, with favorable Committee Substitute by the following vote: Yeas 6, Nays 0; May 8, 2007, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 753 By: Watson

A BILL TO BE ENTITLED

AN ACT

relating to requirements to report certain data from credit services organizations regarding certain transactions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 393, Finance Code, is amended by adding Section 393.107 to read as follows:

Sec. 393.107. ANNUAL REPORT. (a) Each year, not later than May 1 or a later date set by the Finance Commission of Texas, a credit services organization operating under Section 393.001(3)(B) shall submit to the finance commission a report that contains relevant information concerning its transactions conducted in this state.

(b) A report under this section shall include the following information:

(1) the total number of credit service transactions made, serviced, or brokered by the credit services organization during the preceding year;

(2) the total principal amount resulting from credit services transactions brokered by the credit services organization during the preceding year;

(3) the total amount of authorized fees or charges by category, as authorized under Section 393.001, collected by the credit services organization which serviced transactions during the preceding year;

(4) the total number of unique consumers, including those with multiple transactions, that engaged the services of the credit services organization from the preceding year;

(5) the average term of all credit service transactions made, serviced, or brokered by the credit services organization during the preceding year;

(6) the total number of delinquent or defaulted credit services transactions made, serviced, or brokered by the credit services organization during the preceding year; and

(7) the number of written consumer complaints associated with all credit services transactions serviced by the credit services organization during the preceding year.

(c) A report under this section may include the following information:

(1) geographic origination by county of credit services transactions made, serviced, or brokered by the credit services organization during the preceding year; and

(2) average income ranges of consumers who obtained credit services from the credit services organization during the preceding year.

(d) A report under this section must be:

(1) under oath; and

(2) in the form prescribed by the Finance Commission of Texas.

(e) Information submitted by a credit services organization under this section shall be held privileged and confidential by the Finance Commission of Texas and is exempted from the requirements of Section 552.021, Government Code.

(f) Annually the Finance Commission of Texas shall prepare and publish a consolidated analysis and recapitulation of reports filed under this section.

(g) A credit services organization that is required to comply with this section must maintain a process to collect and report written consumer complaint information regarding its services.

(h) The Finance Commission of Texas shall adopt rules as necessary to implement this section.

SECTION 2. This Act takes effect September 1, 2007.

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