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A BILL TO BE ENTITLED
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AN ACT
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relating to providing protections to consumers of financial |
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services. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 5, Finance Code, is amended by adding |
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Chapter 390 to read as follows: |
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CHAPTER 390. GENERAL CONSUMER PROTECTIONS |
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Sec. 390.001. PREEMPTION. If any provision of this chapter |
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conflicts with another provision of the Finance Code, this chapter |
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prevails to the extent of any conflict. |
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Sec. 390.002. FINDINGS AND PURPOSE. (a) The legislature |
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finds that everyday consumer retail transactions, while once |
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simple, are becoming increasingly complex. Consumers should be |
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able to enter into transactions for goods and services that are |
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governed by some basic rules that may not altered by artifice. |
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(b) The purpose of this chapter is to provide general basic |
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consumer protections for transactions in this state and this |
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chapter shall be liberally construed to achieve this purpose. |
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Sec. 390.002. MAXIMUM INTEREST RATE. A consumer is not |
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required to pay an interest rate for any extension of credit to the |
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consumer under this code that exceeds nine percent per annum. |
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Sec. 390.003. CERTAIN INCREASES IN INTEREST RATES. If a |
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consumer purchases a good under any extension of credit to the |
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consumer under this code for which there is a stated interest rate |
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and begins payments, the interest rate for that good may not be |
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subsequently raised. |
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Sec. 390.004. LATE FEES. (a) A person making an extension |
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of credit under this chapter may not increase interest rates |
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because of a single late payment by a consumer. |
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(b) No late fee for a payment on an extension of credit under |
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this code may exceed $5. |
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(c) No late fee for a payment on an extension of credit under |
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this code may be levied against a person who is over the age of 65 or |
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disabled, or who makes an annual gross income that does not exceed |
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200 percent of the federal poverty level for a family of four. |
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SECTION 2. This Act takes effect September 1, 2009. |