82R6238 CLG-F

By: Anchia H.B. No. 3139

A BILL TO BE ENTITLED

AN ACT

relating to fees paid to the consumer credit commissioner and to fees and interest charged in connection with consumer credit transactions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 14.107(b), Finance Code, is amended to read as follows:

(b) The finance commission by rule shall set the fees for licensing and examination under Chapter 342, 345, 347, 348, 351, or 371 at amounts or rates necessary to recover the costs of administering those chapters. The rules may provide that the amount of a fee charged to a license holder is based on the volume of the license holder's regulated business and other key factors. The commissioner may provide for collection of a single annual fee from a person licensed under Chapter 342, 345, 347, 348, 351, or 371 to include amounts due for both licensing and examination.

SECTION 2. Section 303.009(d), Finance Code, is amended to read as follows:

(d) For an open-end account credit agreement that provides for credit card transactions on which a merchant discount is not imposed or received by the creditor or a retail charge agreement under Chapter 345 without a merchant discount, the ceiling is 21 percent a year.

SECTION 3. Section 303.203(a), Finance Code, is amended to read as follows:

(a) A lender may, at the time or after a loan is made, offer to sell to the borrower and finance in a [the] loan contract subject to this subtitle a charge for an automobile club membership.

SECTION 4. Section 342.004(b), Finance Code, is amended to read as follows:

(b) A loan providing for an effective [a] rate of interest that is 10 percent a year or less is not subject to this chapter.

SECTION 5. Section 342.502(d), Finance Code, is amended to read as follows:

(d) On a loan subject to this chapter a lender may assess and collect a fee that does not exceed the amount prescribed by Section 3.506, Business & Commerce Code [Chapter 617, Acts of the 68th Legislature, Regular Session, 1983 (Article 9022, Vernon's Texas Civil Statutes)], for the return by a depository institution of a dishonored check, negotiable order of withdrawal, or share draft offered in full or partial payment of a loan.

SECTION 6. The heading to Subchapter D, Chapter 345, Finance Code, is amended to read as follows:

SUBCHAPTER D. ALTERNATE FINANCE CHARGE [MARKET COMPETITIVE RATE]

CEILING

SECTION 7. Section 345.155, Finance Code, is amended to read as follows:

Sec. 345.155. TIME PRICE DIFFERENTIAL COMPUTATION AND AMOUNT. (a) A time price differential authorized under Subchapter C [this subchapter] shall be computed using the average daily balance method.

(b) If the amount of a time price differential otherwise authorized under Subchapter C [this subchapter] for a billing cycle in which a balance is due is less than 75 cents a month, the holder may charge an amount that does not exceed 75 cents a month.

SECTION 8. Section 345.157(a), Finance Code, is amended to read as follows:

(a) A retail charge agreement [that implements the market competitive rate ceiling] may provide for the payment of:

(1) a delinquency charge on each installment that is in default for a period that is longer than 21 days;

(2) an attorney's reasonable fee if the agreement is referred for collection to an attorney who is not a salaried employee of the holder; and

(3) court costs and disbursements.

SECTION 9. Section 345.351(a), Finance Code, is amended to read as follows:

(a) A holder who is not an authorized lender under Chapter 342 or a credit union shall:

(1) register with the Office of Consumer Credit Commissioner; and

(2) pay an annual fee in an amount determined as provided by Section 14.107 [of $10] for each location at which a retail installment transaction is originated, serviced, or collected.

SECTION 10. Section 346.103(a), Finance Code, is amended to read as follows:

(a) The following fees may be charged to or collected from a customer in connection with an account under this chapter:

(1) an annual fee not to exceed:

(A) $50 a year on an account with a credit limit of $5,000 or less;

(B) $75 a year on an account with a credit limit exceeding $5,000 but not exceeding $25,000; and

(C) $125 a year on an account with a credit limit exceeding $25,000;

(2) a late charge not to exceed the lesser of $15 or five percent of the payment due after the payment continues unpaid for 10 days or more after the date the payment is due, including Sundays and holidays;

(3) a cash advance charge not to exceed the greater of $2 or two percent of the cash advance;

(4) a returned check fee as provided for a loan agreement under Chapter 342 by Section 3.506, Business & Commerce Code [Section 1, Chapter 617, Acts of the 68th Legislature, Regular Session, 1983 (Article 9022, Vernon's Texas Civil Statutes)]; and

(5) a fee for exceeding a credit limit not to exceed the greater of $15 or five percent of the amount by which the credit limit is exceeded.

SECTION 11. Section 347.451(a), Finance Code, is amended to read as follows:

(a) A creditor who is not an authorized lender under Chapter 342 or a credit union shall:

(1) register with the Office of Consumer Credit Commissioner; and

(2) pay an annual fee in an amount determined as provided by Section 14.107 [of $15] for each location at which a credit transaction is originated, serviced, or collected.

SECTION 12. Section 371.106(a), Finance Code, is amended to read as follows:

(a) Not later than December 1, a pawnshop employee license holder shall pay to the commissioner an annual fee in an amount determined as provided by Section 14.107 [of $15] for the year beginning the next January 1.

SECTION 13. Section 345.153, Finance Code, is repealed.

SECTION 14. This Act takes effect September 1, 2011.