82R1518 ATP-F
 
  By: Craddick H.B. No. 410
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of activities with respect to certain
  extensions of consumer credit.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 302, Finance Code, is
  amended by adding Section 302.003 to read as follows:
         Sec. 302.003.  PROHIBITION ON THIRD-PARTY FEES TO ARRANGE OR
  GUARANTEE CERTAIN EXTENSIONS OF CONSUMER CREDIT. (a) A fee paid or
  to be paid to a third party to assist a consumer in the transacting,
  arranging, guaranteeing, or negotiating of an extension of credit
  may not be contracted for, charged, or received by a creditor or
  third party in connection with the extension of credit if:
               (1)  the extension of credit is secured by a
  non-purchase money security interest in personal property or is
  unsecured; and
               (2)  the proceeds of the extension of credit are used
  for personal, family, or household purposes.
         (b)  The amount of a fee contracted for, charged, or received
  in violation of Subsection (a) is considered interest for usury
  purposes under state law.
         SECTION 2.  Section 393.001(3), Finance Code, is amended to
  read as follows:
               (3)  "Credit services organization" means a person who
  provides, or represents that the person can or will provide, for the
  payment of valuable consideration any of the following services
  with respect to the extension of consumer credit by others:
                     (A)  improving a consumer's credit history or
  rating; or
                     (B)  [obtaining an extension of consumer credit
  for a consumer; or
                     [(C)]  providing advice or assistance to a
  consumer with regard to Paragraph (A) [or (B)].
         SECTION 3.  Subchapter D, Chapter 393, Finance Code, is
  amended by adding Section 393.308 to read as follows:
         Sec. 393.308.  OBTAINING EXTENSIONS OF CONSUMER CREDIT
  PROHIBITED. A credit services organization may not obtain an
  extension of consumer credit for a consumer or assist a consumer in
  obtaining an extension of consumer credit.
         SECTION 4.  This Act takes effect September 1, 2011.