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A BILL TO BE ENTITLED
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AN ACT
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relating to notice requirements for licensed lenders of deferred |
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presentment transactions and motor vehicle certificate of title |
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loans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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. NOTICE REQUIREMENTS. (a) In this section, |
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the term "deferred presentment transaction," as defined by Section |
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341.001, is also referred to as a "payday loan." |
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(b) A lender that makes a deferred presentment transaction |
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shall prominently and conspicuously post at the lender's place of |
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business a sign that is at least 11 inches by 17 inches in size, |
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stating in letters at least one inch high: "YOU MAY REPORT ANY |
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CONCERNS OR COMPLAINTS ABOUT A PERSON THAT MAKES PAYDAY LOANS OR |
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AUTO TITLE LOANS TO THE OFFICE OF CONSUMER CREDIT COMMISSIONER BY |
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CALLING THE OFFICE'S CONSUMER ASSISTANCE HELP LINE AT |
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1-800-538-1579." |
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(c) The lender shall post the sign required by Subsection |
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(b) in: |
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(1) the general waiting area for borrowers at the |
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lender's place of business; or |
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(2) each room where the lender conducts business with |
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a borrower, if the lender's place of business does not have a |
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general waiting area. |
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(d) On the request of a customer, the lender shall provide |
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the complaint information contained in the notice to the customer |
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in writing. |
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SECTION 2. Chapter 342, Finance Code, is amended by adding |
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Subchapter N to read as follows: |
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SUBCHAPTER N. MOTOR VEHICLE CERTIFICATE OF TITLE LOANS |
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Sec. 342.651. DEFINITIONS. In this subchapter: |
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(1) "Lender" means a lender licensed under this |
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chapter. |
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(2) "Motor vehicle certificate of title loan" means a |
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loan in which a motor vehicle certificate of title is given as |
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security for a loan. The term is also referred to as an "auto title |
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loan." |
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Sec. 342.652. INAPPLICABILITY OF SUBCHAPTER. This |
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subchapter does not apply to a retail installment transaction under |
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Chapter 348 or other loan made to finance the purchase of a motor |
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vehicle. |
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Sec. 342.653. NOTICE REQUIREMENTS. (a) A lender that makes |
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a motor vehicle certificate of title loan shall prominently and |
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conspicuously post at the lender's place of business a sign that is |
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at least 11 inches by 17 inches in size, stating in letters at least |
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one inch high: "YOU MAY REPORT ANY CONCERNS OR COMPLAINTS ABOUT A |
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PERSON THAT MAKES PAYDAY LOANS OR AUTO TITLE LOANS TO THE OFFICE OF |
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CONSUMER CREDIT COMMISSIONER BY CALLING THE OFFICE'S CONSUMER |
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ASSISTANCE HELP LINE AT 1-800-538-1579." |
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(b) The lender shall post the sign required by Subsection |
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(a) in: |
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(1) the general waiting area for borrowers at the |
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lender's place of business; or |
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(2) in each room where the lender conducts business |
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with a borrower, if the lender's place of business does not have a |
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general waiting area. |
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(c) On the request of a customer, the lender shall provide |
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the complaint information contained in the notice to the customer |
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in writing. |
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SECTION 3. The heading to Subchapter B, Chapter 393, |
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Finance Code, is amended to read as follows: |
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SUBCHAPTER B. REGISTRATION; [AND] DISCLOSURE STATEMENTS; NOTICES |
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SECTION 4. Subchapter B, Chapter 393, Finance Code, is |
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amended by adding Section 393.107 to read as follows: |
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Sec. 393.107. NOTICE REQUIREMENTS. (a) In this section: |
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(1) "Deferred presentment transaction" has the |
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meaning assigned by Section 341.001. The term is also referred to |
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as a "payday loan." |
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(2) "Motor vehicle certificate of title loan" has the |
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meaning assigned by Section 342.651. The term is also referred to |
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as an "auto title loan." |
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(b) This section applies only to a credit services |
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organization that obtains or otherwise assists in obtaining for |
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consumers an extension of consumer credit in the form of a deferred |
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presentment transaction or a motor vehicle certificate of title |
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loan. This section does not apply to a retail installment |
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transaction under Chapter 348 or other loan made to finance the |
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purchase of a motor vehicle. |
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(c) A credit services organization shall prominently and |
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conspicuously post at the organization's place of business a sign |
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that is at least 11 inches by 17 inches in size, stating in letters |
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at least one inch high: "YOU MAY REPORT ANY CONCERNS OR COMPLAINTS |
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ABOUT A PERSON THAT OBTAINS OR ASSISTS IN OBTAINING PAYDAY LOANS OR |
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AUTO TITLE LOANS TO THE OFFICE OF CONSUMER CREDIT COMMISSIONER BY |
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CALLING THE OFFICE'S CONSUMER ASSISTANCE HELP LINE AT |
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1-800-538-1579." |
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(d) The credit services organization shall post the sign |
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required by Subsection (c) in: |
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(1) the general waiting area for consumers at the |
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organization's place of business; or |
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(2) in each room where the organization conducts |
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business with a consumer, if the organization's place of business |
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does not have a general waiting area. |
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(e) On the request of a consumer, a credit services |
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organization shall provide the complaint information contained in |
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the notice to the consumer in writing. |
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(f) The Finance Commission of Texas may adopt rules to |
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implement this section. |
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SECTION 5. This Act takes effect September 1, 2011. |