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A BILL TO BE ENTITLED
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AN ACT
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relating to the interest and fees that may be charged for certain |
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consumer loans; providing a criminal penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 342, Finance Code, is |
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amended by adding Section 342.200 to read as follows: |
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Sec. 342.200. INTEREST CHARGES: GENERAL LIMIT, |
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COMPUTATION, AND PAYMENT. (a) Notwithstanding any other provision |
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of this subchapter, Subchapter F, or a rule adopted under this |
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chapter, unless the provision sets a lower limit on an interest |
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charge, a loan contract under this chapter that is not secured by |
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real property may not provide for an interest charge for the cash |
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advance that exceeds 30 percent a year, including any fees included |
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in the computation of interest under this chapter or other law. |
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(b) A charge for interest must be computed and paid as a |
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percentage of the unpaid principal balance. For purposes of this |
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subsection, "unpaid principal balance" means the balance that has |
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not been paid, exclusive of any interest, service charges, or other |
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charges related to the loan. |
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(c) An interest rate charged on an overdue balance may not |
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exceed the maximum rate charged before the balance becomes due. |
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SECTION 2. Subchapter H, Chapter 342, Finance Code, is |
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amended by adding Section 342.354 to read as follows: |
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Sec. 342.354. REFUND OF PRECOMPUTED INTEREST: OTHER LOANS. |
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(a) This section applies only to a loan contract to which Section |
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342.351 or 342.352 does not apply. |
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(b) If the contract is prepaid in full, the lender shall |
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refund or credit to the borrower unearned interest charges paid by |
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the borrower, as computed by the actuarial method or another method |
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that is at least as favorable to the borrower. |
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SECTION 3. Subchapter M, Chapter 342, Finance Code, is |
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amended by adding Section 342.606 to read as follows: |
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Sec. 342.606. INTEREST AND FEES FOR DEFERRED PRESENTMENT |
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TRANSACTION. (a) A lender may not charge or receive interest or |
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fees in connection with a deferred presentment transaction other |
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than the interest and fees specifically authorized by this section. |
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(b) A deferred presentment transaction may provide for an |
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administrative fee not to exceed $5 for each transaction. An |
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administrative fee is not included in the computation of interest. |
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(c) If there are insufficient funds to pay a check on the |
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date of presentment, a lender may charge a fee not to exceed the |
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greater of $15 or the amount charged to the lender by the financial |
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institution. Only one fee may be charged under this section for a |
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single check, regardless of whether the check has been deposited |
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and returned more than once. A fee under this subsection is the |
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exclusive authorized charge for late payment. |
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(d) A person who violates this section commits an offense. |
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An offense under this subsection is a state jail felony. |
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SECTION 4. This Act takes effect September 1, 2009. |