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A BILL TO BE ENTITLED
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AN ACT
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relating to the disclosure and increase of credit card interest |
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rates and fees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 4, Finance Code, is amended by |
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adding Chapter 346A to read as follows: |
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CHAPTER 346A. CREDIT CARD INTEREST RATES |
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Sec. 346A.001. DEFINITION. In this chapter, "credit card" |
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means a card or device issued under an agreement by which a credit |
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card issuer gives to a cardholder the right to obtain credit from |
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the issuer or another person. |
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Sec. 346A.002. DISCLOSURE OF INTEREST RATE REQUIRED; |
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INCREASE OF DISCLOSED RATES PROHIBITED. (a) At the time that a |
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credit card agreement is entered into, the credit card issuer must |
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disclose to the cardholder all interest rates and fees that may |
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apply to the account. |
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(b) A credit card issuer may not charge an interest rate or |
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fee greater than a rate or fee disclosed under Subsection (a). |
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Sec. 346A.003. NOTIFICATION OF INTEREST RATE INCREASE. A |
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credit card issuer shall notify a cardholder of any interest rate |
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increase that will apply to the credit card account before the |
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increase takes effect. |
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Sec. 346A.004. RATE INCREASE RESULTING FROM PAST DUE |
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PAYMENT. A credit card issuer may increase an interest rate |
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applicable to a credit card account based on a past due payment only |
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if the past due payment is made after the 14th day after the date on |
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which the payment was due. |
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Sec. 346A.005. PROHIBITED RATE INCREASE OR FEE VOID. An |
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interest rate or fee increase that violates this chapter has no |
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effect. |
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SECTION 2. Chapter 346A, Finance Code, as added by this Act, |
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applies only to a credit card agreement entered into, amended, or |
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renewed on or after the effective date of this Act. A credit card |
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agreement entered into, amended, or renewed before the effective |
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date of this Act is governed by the law in effect on the date the |
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agreement was entered into, amended, or renewed, and the former law |
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is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |