80R4182 ATP-F
 
  By: Shapleigh S.B. No. 856
 
 
 
   
 
 
A BILL TO BE ENTITLED
AN ACT
relating to the prohibition on participating in the lending of
credit by a credit services organization that assists a borrower in
obtaining the credit.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Subchapter D, Chapter 393, Finance Code, is
amended by adding Section 393.308 to read as follows:
       Sec. 393.308.  ACTING AS OR ASSOCIATING WITH LENDER. (a) A
credit services organization may not facilitate or assist in
obtaining credit for a consumer if:
             (1)  the organization is the lender;
             (2)  the organization or an officer, director, or
employee of the organization is in any way related to the lender or
an officer, director, or employee of the lender;
             (3)  the lender or the organization is an affiliate of
the other, or the lender and the organization are owned or
controlled by the same holding company;
             (4)  the organization retains or receives an economic
interest in the loan revenue;
             (5)  the organization services or collects the loan on
behalf of the lender; or
             (6)  the organization provides compensation to or
shares resources with the lender.
       (b)  A credit services organization may not use a scheme,
device, or contrivance to evade the application of this section.
       SECTION 2.  This Act takes effect September 1, 2007.