| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the regulation of credit services organizations. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. The heading to Subchapter B, Chapter 393, |
|
|
Finance Code, is amended to read as follows: |
|
|
SUBCHAPTER B. REGISTRATION, LICENSING, AND DISCLOSURE STATEMENTS |
|
|
SECTION 2. Subchapter B, Chapter 393, Finance Code, is |
|
|
amended by adding Sections 393.1045 and 393.1046 to read as |
|
|
follows: |
|
|
Sec. 393.1045. LICENSE REQUIRED FOR SERVICES FOR CERTAIN |
|
|
LOANS. (a) This section applies only to a credit services |
|
|
organization that obtains, facilitates, or assists a consumer to |
|
|
obtain an extension of consumer credit in which any of the following |
|
|
is given as security for or in connection with the debt: |
|
|
(1) the consumer's personal check to be cashed or |
|
|
deposited at a designated future date; or |
|
|
(2) an authorization to debit at a designated future |
|
|
date a deposit account maintained by the consumer. |
|
|
(b) A credit services organization must be licensed by the |
|
|
Office of Consumer Credit Commissioner as provided by this section |
|
|
to engage in an activity described by Subsection (a). |
|
|
(c) The Finance Commission of Texas shall adopt rules as |
|
|
necessary: |
|
|
(1) to establish procedures for issuing, renewing, and |
|
|
enforcing a license under this section; |
|
|
(2) to set a maximum fee for the services to be |
|
|
performed by a credit services organization in connection with an |
|
|
activity described by Subsection (a); and |
|
|
(3) for the administration of this section and Section |
|
|
393.1046. |
|
|
Sec. 393.1046. EXAMINATION OF CERTAIN ORGANIZATIONS; |
|
|
ACCESS TO RECORDS. (a) The consumer credit commissioner or the |
|
|
commissioner's representative shall, at the times the commissioner |
|
|
considers necessary: |
|
|
(1) examine each place of business of each credit |
|
|
services organization licensed under Section 393.1045; and |
|
|
(2) investigate the credit services organization's |
|
|
transactions, including contracts, books, records, accounts, |
|
|
papers, and correspondence, to the extent the transactions and |
|
|
records pertain to the activities regulated under Section 393.1045. |
|
|
(b) The credit services organization shall: |
|
|
(1) give the consumer credit commissioner or the |
|
|
commissioner's representative free access to the organization's |
|
|
office, place of business, files, safes, and vaults; and |
|
|
(2) allow the commissioner or the commissioner's |
|
|
authorized representative to make a copy of an item that may be |
|
|
investigated under Subsection (a)(2). |
|
|
(c) During an examination, the consumer credit commissioner |
|
|
or the commissioner's representative may administer oaths and |
|
|
examine any person under oath on any subject pertinent to a matter |
|
|
that the commissioner is authorized or required to consider, |
|
|
investigate, or secure information about under Section 393.1045. |
|
|
(d) Information obtained under this section is |
|
|
confidential. |
|
|
(e) A credit services organization's violation of |
|
|
Subsection (b) is a ground for the suspension or revocation of the |
|
|
organization's license. |
|
|
SECTION 3. Not later than October 1, 2009, the Finance |
|
|
Commission of Texas shall adopt rules required by Section 393.1045, |
|
|
Finance Code, as added by this Act. |
|
|
SECTION 4. A credit services organization is not required |
|
|
to obtain a license under Section 393.1045, Finance Code, as added |
|
|
by this Act, until January 1, 2010. |
|
|
SECTION 5. (a) Except as provided by Subsection (b) of this |
|
|
section, this Act takes effect September 1, 2009. |
|
|
(b) Section 393.1046, Finance Code, as added by this Act, |
|
|
takes effect January 1, 2010. |