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A BILL TO BE ENTITLED
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AN ACT
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relating to credit services organizations and extensions of |
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consumer credit facilitated by credit services organizations; |
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providing civil and administrative penalties. |
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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 342.607 to read as follows: |
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Sec. 342.607. DEFERRED PRESENTMENT TRANSACTION DATA |
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COLLECTION SYSTEM. (a) In this section, "credit access business" |
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has the meaning assigned by Section 393.001(2-a). |
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(b) The commissioner shall establish and implement a |
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database for the compilation of information relating to deferred |
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presentment transactions that allows the commissioner or persons |
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who offer, service, or broker the transactions, including a credit |
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access business, to determine: |
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(1) whether an individual seeking to enter into a |
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deferred presentment transaction with the person has any |
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outstanding deferred presentment transactions entered into with |
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other persons; |
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(2) the total number of outstanding deferred |
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presentment transactions entered into by the individual described |
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by Subdivision (1) with other persons; and |
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(3) whether the person is in compliance with this |
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section and other provisions of law governing deferred presentment |
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transactions. |
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(c) The commissioner shall contract with a third-party |
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vendor to operate the database required by this section. In |
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selecting the vendor, the commissioner shall: |
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(1) consider the vendor's ability to meet the |
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requirements of this section; |
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(2) consider the cost of the vendor's services; |
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(3) give strong consideration to the vendor's ability |
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to prevent fraud, abuse, and other unlawful activity associated |
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with deferred presentment transactions; |
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(4) give strong consideration to whether the vendor |
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operates a similar database in another state; and |
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(5) give strong consideration to whether the vendor's |
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operation of the database would facilitate the enforcement of laws |
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governing deferred presentment transactions and the persons who |
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offer, service, or broker those transactions. |
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(d) The commissioner shall ensure that: |
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(1) the third-party vendor operating the database |
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operates the database in accordance with this section and rules |
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adopted by the finance commission under this section; and |
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(2) the database established under this section: |
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(A) allows persons required to submit |
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information to the database to submit and access the required |
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information from any location in this state; |
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(B) provides real-time access by the |
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commissioner to information contained in the database from any |
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location in this state; and |
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(C) contains safeguards to ensure that |
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information contained in the database may not be accessed by an |
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unauthorized person. |
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(e) A person who offers, services, or brokers a deferred |
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presentment transaction, including a credit access business, shall |
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submit to the database at the time the transaction is entered into |
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data relating to the transaction that the commissioner, by rule of |
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the finance commission, determines necessary. |
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(f) Information in the database is confidential and is not |
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subject to disclosure under Chapter 552, Government Code. |
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(g) The finance commission shall adopt rules as necessary to |
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implement this section, including rules: |
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(1) relating to the form and content of information to |
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be submitted to the database; |
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(2) prescribing a fee to be paid by persons required to |
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submit information to be included in the database under Subsection |
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(e); and |
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(3) establishing requirements for the retention, |
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archiving, and deletion of information entered into or stored in |
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the database. |
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(h) The third-party vendor shall charge a person who offers, |
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services, or brokers a deferred presentment transaction a fee to |
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access or use the database under this section. The fee may be |
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charged on a per-transaction basis and may be used only to pay the |
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costs associated with the maintenance of the database under this |
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section. The finance commission by rule must approve the amount of |
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the fee, which may not exceed $1 per deferred presentment |
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transaction. |
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(i) A person who ceases to offer, service, or broker |
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deferred presentment transactions shall continue to submit |
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information required by this section for any transactions that are |
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outstanding and with respect to which the person continues |
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collection efforts. Not later than the 10th day after the date the |
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person ceases to offer deferred presentment transactions, the |
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person shall submit to the commissioner for approval a plan for |
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continuing compliance with this section. The commissioner shall |
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promptly approve or disapprove the plan. The commissioner may |
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require a person to whom this subsection applies to submit a new or |
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modified plan. |
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SECTION 2. Subsection (a), Section 392.301, Finance Code, |
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is amended to read as follows: |
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(a) In debt collection, a debt collector may not use |
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threats, coercion, or attempts to coerce that employ any of the |
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following practices: |
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(1) using or threatening to use violence or other |
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criminal means to cause harm to a person or property of a person; |
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(2) accusing falsely or threatening to accuse falsely |
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a person of fraud or any other crime; |
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(3) representing or threatening to represent to any |
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person other than the consumer that a consumer is wilfully refusing |
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to pay a nondisputed consumer debt when the debt is in dispute and |
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the consumer has notified in writing the debt collector of the |
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dispute; |
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(4) threatening to sell or assign to another the |
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obligation of the consumer and falsely representing that the result |
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of the sale or assignment would be that the consumer would lose a |
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defense to the consumer debt or would be subject to illegal |
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collection attempts; |
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(5) threatening that the debtor will be arrested for |
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nonpayment of a consumer debt without proper court proceedings; |
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(6) threatening to file a charge, complaint, or |
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criminal action against a debtor when the debtor has not violated a |
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criminal law; |
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(7) threatening that nonpayment of a consumer debt |
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will result in the seizure, repossession, or sale of the person's |
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property without proper court proceedings; |
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(8) referencing a certification signed by the consumer |
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as required by Section 393.630(b) or any penalties associated with |
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a violation of that section; or |
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(9) [(8)] threatening to take an action prohibited by |
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law. |
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SECTION 3. Section 393.001, Finance Code, is amended by |
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amending Subdivisions (1) and (3) and adding Subdivisions (1-a), |
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(2-a), (3-a), (4-a), (5), (6), (7), (8), (9), (10), (11), (12), and |
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(13) to read as follows: |
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(1) "Commissioner" means the consumer credit |
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commissioner. |
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(1-a) "Consumer" means an individual who is solicited |
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to purchase or who purchases the services of a credit services |
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organization. |
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(2-a) "Credit access business" means a credit services |
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organization that obtains for a consumer or assists a consumer in |
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obtaining an extension of consumer credit. |
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(3) "Credit services organization" means a person who |
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provides, or represents that the person can or will provide, for the |
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payment of valuable consideration any of the following services |
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with respect to the extension of consumer credit by others: |
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(A) improving a consumer's credit history or |
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rating; |
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(B) obtaining an extension of consumer credit for |
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a consumer in the form of a single-payment deferred presentment |
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transaction, a multiple-payment deferred presentment transaction, |
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a single-payment motor vehicle title loan, or a multiple-payment |
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motor vehicle title loan; or |
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(C) providing advice or assistance to a consumer |
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with regard to Paragraph (A) or (B). |
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(3-a) "Deferred presentment transaction" means a |
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single-payment or multiple-payment transaction defined as a |
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deferred presentment transaction by Section 341.001 in connection |
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with which the consumer is not required to provide real or personal |
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property as security. |
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(4-a) "Finance commission" means the Finance |
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Commission of Texas. |
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(5) "Military borrower" includes a "covered member" or |
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a "dependent" of a covered member, as those terms are defined by 10 |
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U.S.C. Section 987 or a successor statute. |
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(6) "Motor vehicle title loan" means a single-payment |
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or multiple-payment loan in which an unencumbered motor vehicle is |
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given as the only security for the loan, except as provided by |
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Section 393.629(c). The term does not include a retail installment |
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transaction under Chapter 348 or another loan made to finance the |
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purchase of a motor vehicle. |
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(7) "Multiple-payment deferred presentment |
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transaction" means a deferred presentment transaction that is not a |
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single-payment deferred presentment transaction. |
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(8) "Multiple-payment motor vehicle title loan" means |
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a motor vehicle title loan that is not a single-payment motor |
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vehicle title loan. |
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(9) "Office" means the Office of Consumer Credit |
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Commissioner. |
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(10) "Refinance" means a rollover, renewal, or other |
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type of transaction in which all or a portion of the principal, |
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fees, or interest due under an outstanding extension of consumer |
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credit becomes due on a later date. The term does not include an |
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extended payment plan described by Section 393.638. The term |
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includes a new extension of consumer credit that: |
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(A) consists of debt arising from principal, |
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fees, or interest that was not paid in full under an outstanding or |
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previous extension of consumer credit; or |
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(B) is made on or before the seventh day after the |
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date a previous extension of consumer credit that a credit access |
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business obtained for a consumer or assisted a consumer in |
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obtaining was paid in full. |
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(11) "Service" means an act, conduct, or activity that |
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is performed or to be performed for a consumer's benefit or that |
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involves assisting a consumer in obtaining an extension of consumer |
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credit, including: |
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(A) negotiating or closing a loan or other |
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extension of consumer credit; |
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(B) issuing a guaranty, letter of credit, or |
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other credit enhancement; and |
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(C) servicing an extension of consumer credit. |
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(12) "Single-payment deferred presentment |
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transaction" means a deferred presentment transaction for which the |
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entire cash advance, interest, and fees are required under the |
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terms of the transaction to be payable in a single payment. |
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(13) "Single-payment motor vehicle title loan" means a |
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motor vehicle title loan for which the entire principal, interest, |
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and fees are required under the terms of the loan to be payable in a |
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single payment. |
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SECTION 4. Section 393.201, Finance Code, is amended by |
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amending Subsections (b) and (c) and adding Subsection (d) to read |
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as follows: |
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(b) In addition to the notice required by Section 393.202, |
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the contract must: |
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(1) contain the payment terms, including the total |
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payments to be made by the consumer, whether to the organization or |
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to another person; |
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(2) fully describe the services the organization shall |
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[is to] perform for the consumer or on behalf of a third party, |
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including each guarantee and each promise of a full or partial |
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refund and the estimated period for performing and completing all |
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of the services, not to exceed 180 days or the period permitted |
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under an extended payment plan authorized by Subchapter G; |
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(3) contain the address of the organization's |
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principal place of business; and |
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(4) contain the name and address of the organization's |
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agent in this state authorized to receive service of process. |
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(c) A contract with a credit access business[, as defined by
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Section 393.601,] for the performance of services [described by
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Section 393.602(a)] must, in addition to the requirements of |
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Subsection (b) and Section 393.302: |
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(1) contain a statement that there is no prepayment |
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penalty; |
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(2) contain a statement that a credit access business |
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must comply with Chapter 392 and the federal Fair Debt Collection |
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Practices Act (15 U.S.C. Section 1692 et seq.) with respect to an |
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extension of consumer credit [described by Section 393.602(a)]; |
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(3) contain a statement that a person may not threaten |
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or pursue criminal charges against a consumer related to a check or |
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other debit authorization provided by the consumer as security for |
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a transaction in the absence of forgery, fraud, theft, or other |
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criminal conduct; |
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(4) contain a statement that a credit access business |
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must comply, to the extent applicable, with 10 U.S.C. Section 987 |
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and any regulations adopted under that law with respect to an |
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extension of consumer credit [described by Section 393.602(a)]; |
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(5) disclose to the consumer: |
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(A) the lender from whom the extension of |
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consumer credit is obtained; |
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(B) the interest paid or to be paid to the lender; |
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and |
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(C) the specific fees that will be paid to the |
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credit access business for the business's services and to any third |
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party; [and] |
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(6) contain the name and address of the office, the |
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office's website address, [Office of Consumer Credit Commissioner] |
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and the telephone number of the office's consumer helpline; and |
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(7) use model contract clauses adopted by rule of the |
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finance commission. |
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(d) The finance commission shall adopt rules to implement |
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this section. |
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SECTION 5. Section 393.222, Finance Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) A credit access business shall post, in the same |
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manner as a notice required under Subsection (a), and provide as a |
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separate document to a consumer, a notice prescribed by the finance |
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commission regarding the availability of extended payment plans |
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that describes the basic features of the plans. |
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SECTION 6. Subsection (a), Section 393.223, Finance Code, |
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is amended to read as follows: |
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(a) Before performing services described by Section |
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393.001(2-a) [393.221(1)], a credit access business must provide to |
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a consumer a disclosure adopted by rule of the finance commission |
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[Finance Commission of Texas] that discloses the following in a |
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form prescribed by the commission: |
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(1) the interest, fees, and annual percentage rates, |
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as applicable, to be charged on a deferred presentment transaction |
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or on a motor vehicle title loan, as applicable, in comparison to |
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interest, fees, and annual percentage rates to be charged on other |
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alternative forms of consumer debt; |
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(2) the amount of accumulated fees a consumer would |
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incur by renewing or refinancing a deferred presentment transaction |
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or motor vehicle title loan that remains outstanding for a period of |
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two weeks, one month, two months, and three months; [and] |
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(3) information regarding the typical pattern of |
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repayment of deferred presentment transactions and motor vehicle |
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title loans; and |
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(4) the name of the credit access business and any |
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unique number assigned to the license issued to the business under |
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Subchapter G. |
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SECTION 7. Subchapter D, Chapter 393, Finance Code, is |
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amended by adding Sections 393.308, 393.309, and 393.310 to read as |
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follows: |
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Sec. 393.308. PROHIBITION ON OBTAINING CERTAIN LOANS OR |
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EXTENSIONS OF CREDIT. (a) A credit services organization may not |
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obtain for a consumer or assist a consumer in obtaining an extension |
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of consumer credit in any form other than in the form of a |
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single-payment deferred presentment transaction, a |
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multiple-payment deferred presentment transaction, a |
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single-payment motor vehicle title loan, or a multiple-payment |
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motor vehicle title loan. |
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(b) A credit services organization may obtain for a consumer |
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or assist a consumer in obtaining a loan or other extension of |
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consumer credit only if the loan or extension of consumer credit is |
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in the form of a deferred presentment transaction or motor vehicle |
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title loan described by Subsection (a) made by a third-party lender |
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that is unaffiliated with the credit services organization and does |
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not have any ownership, directors, officers, members, or employees |
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in common with the credit services organization. |
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(c) A credit services organization may not charge or receive |
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from a consumer a fee or other valuable consideration in connection |
|
with a loan or other extension of consumer credit that is not a |
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deferred presentment transaction or motor vehicle title loan |
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described by Subsection (b). |
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(d) The finance commission may adopt rules to implement this |
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section. |
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(e) Notwithstanding Section 14.252, the commissioner may |
|
assess an administrative penalty in an amount not to exceed $2,000 |
|
for each violation against a credit access business that violates |
|
this section, regardless of whether the violation is knowing or |
|
wilful. |
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(f) A consumer may maintain an action under this section for |
|
any violation of this section. In any suit filed under this |
|
section, a consumer may recover: |
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(1) damages in an amount not to exceed $10,000 for each |
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violation; and |
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(2) court costs and reasonable and necessary |
|
attorney's fees. |
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Sec. 393.309. RESTRICTION ON AMOUNT CHARGED IN CONNECTION |
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WITH EXTENSION OF CONSUMER CREDIT. Total charges in connection |
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with an extension of consumer credit that a credit services |
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organization obtains for a consumer or assists the consumer in |
|
obtaining, including interest, lender charges, and any valuable |
|
consideration received by the credit services organization, may not |
|
exceed the permissible interest and fee and other charges for a |
|
similar type of consumer loan under Subchapter F, Chapter 342. |
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Sec. 393.310. EVASION OF MUNICIPAL ORDINANCE PROHIBITED. |
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(a) A credit access business that is subject to the regulation of a |
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municipal ordinance may not, to evade the municipal ordinance: |
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(1) require, as a condition of obtaining for a |
|
consumer or assisting a consumer in obtaining an extension of |
|
consumer credit in the form of a deferred presentment transaction |
|
or motor vehicle title loan or a renewal, rollover, or refinance of |
|
such an extension of consumer credit, that any part of the |
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transaction occur in a location outside the municipality; or |
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(2) transfer the business's obligations and rights |
|
under a contract to obtain for a consumer or assist a consumer in |
|
obtaining an extension of consumer credit in the form of a deferred |
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presentment transaction or motor vehicle title loan or a renewal, |
|
rollover, or refinance of such an extension of consumer credit to a |
|
branch of the business or another business located outside the |
|
municipality. |
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(b) For purposes of Subsection (a), "renew," "rollover," or |
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"refinance" have any meanings assigned to those terms by the |
|
municipal ordinance. |
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(c) If a credit access business violates Subsection (a), the |
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contract between the business and the consumer for the performance |
|
of services to which the violation relates is void and |
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unenforceable, including any requirement under the contract that |
|
the consumer pay fees or other consideration. |
|
SECTION 8. Section 393.602, Finance Code, is amended by |
|
amending Subsections (a) and (b) and adding Subsection (b-1) to |
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read as follows: |
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(a) This subchapter applies only to a credit services |
|
organization that obtains for a consumer or assists a consumer in |
|
obtaining an extension of consumer credit [in the form of:
|
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[(1) a deferred presentment transaction; or
|
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[(2) a motor vehicle title loan]. |
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(b) Subject to Section 393.309, a [A] credit access business |
|
may assess fees as agreed to between the parties for [its] services |
|
performed to obtain an extension of consumer credit for a consumer |
|
or assist a consumer in obtaining an extension of consumer credit in |
|
the form of a deferred presentment transaction or motor vehicle |
|
title loan or a refinance of such an extension of consumer credit |
|
[as agreed to between the parties]. A credit access business fee |
|
may be calculated daily, biweekly, monthly, or on another periodic |
|
basis. A credit access business is permitted to charge amounts |
|
allowed by other laws, as applicable. A fee may not be charged |
|
unless it is disclosed. |
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(b-1) Notwithstanding Subsection (a) or (b), a credit |
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services organization that is not obtaining for a consumer or |
|
assisting a consumer in obtaining an extension of consumer credit |
|
may also charge or receive from a consumer a fee or other valuable |
|
consideration in connection with advice, assistance, or other |
|
services that the credit services organization provides to improve |
|
a consumer's credit history or rating. |
|
SECTION 9. Section 393.604, Finance Code, is amended by |
|
amending Subsection (a) and adding Subsection (d) to read as |
|
follows: |
|
(a) An application for a license under this subchapter must: |
|
(1) be under oath; |
|
(2) give the approximate location from which the |
|
business is to be conducted; |
|
(3) identify the business's principal parties in |
|
interest; |
|
(4) contain the name, physical address, and telephone |
|
number of all third-party lender organizations: |
|
(A) with which the business contracts to provide |
|
services; [described by Section 393.602(a)] or |
|
(B) from which the business arranges extensions |
|
of consumer credit [described by Section 393.602(a)]; [and] |
|
(5) include a copy of each agreement between the |
|
business and a third-party lender organization: |
|
(A) with which the business contracts to provide |
|
services; or |
|
(B) from which the business arranges extensions |
|
of consumer credit; and |
|
(6) contain other relevant information that the |
|
commissioner requires for the findings required under Section |
|
393.607. |
|
(d) Information provided by an applicant under this section |
|
is public information for the purposes of Chapter 552, Government |
|
Code. |
|
SECTION 10. Subsections (a) and (b), Section 393.622, |
|
Finance Code, are amended to read as follows: |
|
(a) The finance commission may: |
|
(1) adopt rules necessary to enforce and administer |
|
this subchapter; |
|
(2) adopt rules with respect to reports of summary |
|
business information required to be submitted [the quarterly
|
|
reporting] by a licensed credit access business under Section |
|
393.627 [licensed under this subchapter of summary business
|
|
information relating to extensions of consumer credit described by
|
|
Section 393.602(a)]; [and] |
|
(3) adopt rules with respect to periodic examination |
|
by the office relating to extensions of consumer credit the |
|
business obtained for a consumer or assisted a consumer in |
|
obtaining [described by Section 393.602(a)], including rules |
|
related to charges for defraying the reasonable cost of conducting |
|
the examinations; and |
|
(4) adopt rules identifying extensions of consumer |
|
credit that are refinances. |
|
(b) The finance commission may adopt rules under this |
|
section to allow the commissioner to review, as part of a periodic |
|
examination, any relevant contracts between the credit access |
|
business and the third-party lender organizations with which the |
|
credit access business contracts to provide services [described by
|
|
Section 393.602(a)] or from which the business arranges extensions |
|
of consumer credit [described by Section 393.602(a)]. A contract |
|
or information obtained by the commissioner under this section is |
|
considered proprietary and confidential to the respective parties |
|
to the contract, and is not subject to disclosure under Chapter 552, |
|
Government Code. |
|
SECTION 11. Subchapter G, Chapter 393, Finance Code, is |
|
amended by adding Section 393.6221 to read as follows: |
|
Sec. 393.6221. EXAMINATION OR INVESTIGATION BY |
|
COMMISSIONER; OATHS. During an examination or an investigation, |
|
the commissioner or the commissioner's representative may |
|
administer oaths and examine a person under oath on a subject |
|
pertinent to a matter that the commissioner is authorized or |
|
required to consider, investigate, or secure information about |
|
under this chapter. |
|
SECTION 12. Section 393.625, Finance Code, is amended to |
|
read as follows: |
|
Sec. 393.625. MILITARY BORROWERS. (a) An extension of |
|
consumer credit [described by Section 393.602(a)] that is obtained |
|
by a credit access business for a military borrower [member of the
|
|
United States military or a dependent of a member of the United
|
|
States military] or that the business assisted a military borrower |
|
[that person] in obtaining must comply with 10 U.S.C. Section 987 |
|
and any regulations adopted under that law, to the extent |
|
applicable. |
|
(b) The term of an extension of consumer credit, including |
|
all renewals and refinances, obtained for a military borrower by a |
|
credit access business or that a credit access business assists a |
|
military borrower in obtaining may not exceed: |
|
(1) 90 days, if the debt is a deferred presentment |
|
transaction or single-payment motor vehicle title loan; or |
|
(2) 180 days, if the debt is a multiple-payment motor |
|
vehicle title loan. |
|
(c) The finance commission shall adopt a disclosure |
|
relating to the provisions of state and federal law applicable to a |
|
military borrower who obtains an extension of consumer credit from |
|
or with the assistance of a credit access business. A credit access |
|
business shall provide this disclosure to military borrowers for |
|
whom the credit access business seeks to obtain an extension of |
|
consumer credit. |
|
(d) Notwithstanding Section 14.252, the commissioner may |
|
assess an administrative penalty in an amount not to exceed $5,000 |
|
for each violation against a credit access business that violates |
|
this section, regardless of whether the violation is knowing or |
|
wilful. |
|
SECTION 13. Section 393.626, Finance Code, is amended to |
|
read as follows: |
|
Sec. 393.626. DEBT COLLECTION PRACTICES. A violation of |
|
Chapter 392 by a credit access business with respect to obtaining |
|
for a consumer or assisting a consumer in obtaining an extension of |
|
consumer credit [described by Section 393.602(a)] constitutes a |
|
violation of this subchapter. |
|
SECTION 14. Section 393.627, Finance Code, is amended to |
|
read as follows: |
|
Sec. 393.627. REPORTS [QUARTERLY REPORT] TO COMMISSIONER. |
|
(a) A credit access business shall file [a] quarterly and annual |
|
reports [report] with the commissioner on forms [a form] prescribed |
|
by the commissioner that provide [provides] the following |
|
information relating to extensions of consumer credit [described by
|
|
Section 393.602(a)] during the preceding quarter or year, as |
|
applicable: |
|
(1) the number of consumers for whom the business |
|
obtained or assisted in obtaining those extensions of consumer |
|
credit; |
|
(2) the number of those extensions of consumer credit |
|
obtained by the business or that the business assisted consumers in |
|
obtaining; |
|
(3) the number of refinancing transactions of the |
|
extensions of consumer credit described by Subdivision (2); |
|
(4) the number of consumers refinancing the extensions |
|
of consumer credit described by Subdivision (2); |
|
(5) the number of consumers refinancing more than once |
|
the extensions of consumer credit described by Subdivision (2); |
|
(6) the average amount of the extensions of consumer |
|
credit described by Subdivision (2); |
|
(7) the total amount of fees charged by the business |
|
for the activities described by Subdivision (1); |
|
(8) the number of vehicles surrendered or repossessed |
|
under the terms of an extension of consumer credit in the form of a |
|
motor vehicle title loan obtained by the business or that the |
|
business assisted a consumer in obtaining; |
|
(9) the number of extended payment plans offered by |
|
the credit access business and entered into by consumers, for each |
|
product [the mean, median, and mode of the number of extensions of
|
|
consumer credit obtained by consumers as a result of entering into
|
|
the extensions of consumer credit described by Subdivision (2)]; |
|
and |
|
(10) any related information the commissioner |
|
determines necessary. |
|
(b) All information submitted by a credit access business to |
|
the commissioner for inclusion in a report under this section is |
|
confidential. |
|
(c) The commissioner shall publish a statewide consolidated |
|
analysis and recapitulation of reports filed under this section. |
|
The commissioner may also publish a consolidated analysis and |
|
recapitulation of the reports that provides an analysis of the 15 |
|
largest metropolitan statistical areas and the five largest |
|
counties of this state. |
|
SECTION 15. Subchapter G, Chapter 393, Finance Code, is |
|
amended by adding Sections 393.629 through 393.640 to read as |
|
follows: |
|
Sec. 393.629. GENERAL LIMITATIONS ON EXTENSIONS OF CONSUMER |
|
CREDIT; LANGUAGE REQUIREMENTS; PAYMENT METHOD. (a) The |
|
provisions of this chapter applicable to a credit access business |
|
apply to any consumer physically located in this state at the time |
|
the extension of consumer credit is made, regardless of whether the |
|
extension of consumer credit was made in person in this state. |
|
(b) The finance commission by rule shall adopt Spanish |
|
versions of the model contract clauses and all notices that a credit |
|
access business is required to give to a consumer under this |
|
chapter. A credit access business shall provide to the consumer a |
|
contract that uses the adopted Spanish clauses and notices to the |
|
consumer if in the process of obtaining an extension of consumer |
|
credit the consumer requests that the documents be provided in |
|
Spanish or if the contract is negotiated in Spanish. The executed |
|
contract and any other binding and controlling document between the |
|
credit access business and the consumer must be written in English. |
|
(c) A credit access business shall accept a payment made in |
|
cash or by electronic transfer, cashier's check, teller's check, or |
|
money order offered by the consumer or another party, to retire or |
|
otherwise pay down debt incurred under an extension of consumer |
|
credit that a credit access business obtained for a consumer or |
|
assisted a consumer in obtaining under this chapter. For a motor |
|
vehicle title loan, a consumer may also grant a security interest in |
|
an authorized debit of a bank account. |
|
(d) The term of an extension of consumer credit obtained for |
|
a consumer by a credit access business or that a credit access |
|
business assists a consumer in obtaining may not exceed 180 days. |
|
If a term of less than 180 days for an extension of consumer credit |
|
is specified under this chapter, the shorter term applies. |
|
Sec. 393.630. LIMITATION ON OUTSTANDING DEBT. (a) At any |
|
one time, a consumer may have only one outstanding debt from a |
|
deferred presentment transaction that a credit access business |
|
obtained for the consumer or assisted the consumer in obtaining and |
|
one outstanding debt from a motor vehicle title loan that a credit |
|
access business obtained for the consumer or assisted the consumer |
|
in obtaining. |
|
(b) To obtain an extension of consumer credit in the form of |
|
a deferred presentment transaction facilitated through the |
|
services of a credit access business, a consumer must sign a written |
|
certification on a form adopted by finance commission rule stating |
|
that the consumer has no other outstanding debt from an extension of |
|
consumer credit in the form of a deferred presentment transaction. |
|
(c) A credit access business shall in good faith verify that |
|
a consumer is not falsifying the certification required by |
|
Subsection (b), to the best knowledge and ability of the person |
|
acting on behalf of the credit access business for that |
|
transaction. A person acting on behalf of a credit access business |
|
has satisfied this requirement if the person considers all |
|
information that the consumer shares with the person in negotiating |
|
the transaction and if the person makes a reasonable effort to |
|
verify the consumer's representations with any records that the |
|
credit access business typically consults in the normal course of |
|
its business. |
|
(d) A credit access business that violates this section is |
|
subject to a civil penalty in an amount not to exceed $1,000 for |
|
each violation. |
|
Sec. 393.631. LIMITATIONS RELATING TO MOTOR VEHICLE |
|
SECURING DEBT. (a) The proceeds of the sale of a repossessed motor |
|
vehicle that secured a motor vehicle title loan shall satisfy all |
|
outstanding and unpaid indebtedness under that extension of |
|
consumer credit, and the consumer is not liable for any deficiency |
|
resulting from the sale unless the consumer has committed fraud or |
|
has committed a wilful act of misconduct that damages or impairs the |
|
value of the motor vehicle. |
|
(b) Any fee charged to a consumer for the repossession of a |
|
motor vehicle given as security for a motor vehicle title loan must |
|
be reasonable and may not exceed the amount actually paid by the |
|
credit access business or the lender to a third party for the |
|
repossession. |
|
(c) A repossession under this chapter must comply with |
|
Chapter 9, Business & Commerce Code, except as otherwise provided |
|
by this section. |
|
Sec. 393.632. ESTABLISHMENT OF INCOME OR VALUE; REFERENCE |
|
AMOUNT. (a) A credit access business must require documentation |
|
to establish a consumer's income for purposes of this subchapter. |
|
Acceptable forms of documentation include paper, facsimile, or |
|
electronic copies of: |
|
(1) a payroll document; |
|
(2) a paycheck; |
|
(3) a bank statement; |
|
(4) a report from a nationally or regionally |
|
recognized credit and data reporting company; |
|
(5) Internal Revenue Service Form W-2 from the |
|
preceding year; |
|
(6) the income tax return from the preceding tax year; |
|
(7) a signed letter from the consumer's employer at the |
|
time the extension of consumer credit is sought; or |
|
(8) any other document approved by finance commission |
|
rule. |
|
(b) A credit access business shall retain a copy of the |
|
documentation used to establish a consumer's income under |
|
Subsection (a) according to the business's standard records |
|
retention policy and any applicable rule or regulation establishing |
|
a record retention period. |
|
(c) A credit access business that relies in good faith on a |
|
document presented by the consumer under Subsection (a) to |
|
establish a consumer's income has complied with this section to the |
|
extent the income established under that document meets the |
|
applicable requirements under this chapter. |
|
(d) A credit access business that obtains for a consumer or |
|
assists a consumer in obtaining an extension of consumer credit |
|
through the Internet or other electronic means may rely on |
|
nationally or regionally recognized database reporting systems and |
|
may maintain a record of the database reporting system results used |
|
to comply with Subsections (a) and (b). |
|
(e) To establish the retail value of a motor vehicle for |
|
purposes of this subchapter, a credit access business must: |
|
(1) rely on a nationally or regionally recognized |
|
vehicle appraisal guide or agree in good faith with the consumer to |
|
the vehicle's retail value; and |
|
(2) record the recognized or agreed-on value. |
|
(f) For purposes of this chapter, $28,000 is the initial |
|
reference amount with respect to a consumer's income, and the |
|
commissioner shall adjust this amount annually in accordance with |
|
the Consumer Price Index. |
|
Sec. 393.633. CERTAIN LOCAL ORDINANCES NOT PREEMPTED. This |
|
chapter does not preempt a local ordinance regulating a credit |
|
access business or an extension of consumer credit obtained for a |
|
consumer by a credit access business or that a credit access |
|
business assists a consumer in obtaining, if the ordinance is |
|
compatible with and equal to or more stringent than a requirement |
|
prescribed by this chapter. |
|
Sec. 393.634. SINGLE-PAYMENT DEFERRED PRESENTMENT |
|
TRANSACTION. (a) The sum of all fees, principal, interest, and |
|
other amounts due under an extension of consumer credit in the form |
|
of a single-payment deferred presentment transaction that a credit |
|
access business obtains for a consumer or assists a consumer in |
|
obtaining, excluding fees, may not exceed: |
|
(1) 20 percent of the consumer's gross monthly income, |
|
if the consumer's gross annual income is less than the reference |
|
amount; or |
|
(2) 25 percent of the consumer's gross monthly income, |
|
if the consumer is not described by Subdivision (1) and is not a |
|
military borrower to whom a different limit applies under federal |
|
law. |
|
(b) The term of an original or refinanced extension of |
|
consumer credit in the form of a single-payment deferred |
|
presentment transaction that a credit access business obtains for a |
|
consumer or assists a consumer in obtaining may not be less than 10 |
|
days or longer than 35 days. |
|
(c) An extension of consumer credit in the form of a |
|
single-payment deferred presentment transaction that a credit |
|
access business obtains for a consumer or assists a consumer in |
|
obtaining may not be refinanced more than three times. |
|
(d) If a consumer who has not entered into an extended |
|
payment plan with the credit access business in the preceding 12 |
|
months refinances a single-payment deferred presentment |
|
transaction for the third time: |
|
(1) the credit access business must offer at least one |
|
extended payment plan to the consumer before initiating any debt |
|
collection activities; |
|
(2) the consumer may request, prior to the offer |
|
required by Subdivision (1) being made, an extended payment plan at |
|
any time on or after the date the consumer refinances the deferred |
|
presentment transaction for the third time and on or before the |
|
fifth day after the date on which the third refinance must be repaid |
|
in full; |
|
(3) to comply with the requirement of Subdivision (1), |
|
the credit access business shall send a written notice to the |
|
consumer disclosing the following: |
|
(A) the amount due under the current terms of the |
|
extension of consumer credit if the consumer declines an extended |
|
payment plan; |
|
(B) the amounts due on each of the installment |
|
dates of an extended payment plan; and |
|
(C) the date by which the consumer must accept |
|
the extended payment plan in writing, which date shall be at least |
|
five days after the date of such notice; |
|
(4) the credit access business may not initiate debt |
|
collection activities unless: |
|
(A) the consumer fails to accept the extended |
|
payment plan in writing on or before the deadline contained in the |
|
notice required by Subdivision (3); |
|
(B) the consumer declines the extended payment |
|
plan; or |
|
(C) the consumer fails to make a payment required |
|
by an extended payment plan that the consumer accepted; and |
|
(5) if the consumer declines an extended payment plan |
|
that a credit access business is required to offer under |
|
Subdivision (1), the consumer must sign an extended payment plan |
|
waiver on a form prescribed by the finance commission. |
|
(e) An extended payment plan required to be offered under |
|
Subsection (d) must comply with Section 393.638. |
|
(f) A credit access business may offer a consumer an |
|
extended payment plan that provides the consumer with additional |
|
time to repay the debts obtained through a single-payment deferred |
|
presentment transaction, either before or after the consumer |
|
refinances the single-payment deferred presentment transaction for |
|
the third time, more than once in a 12-month period so long as the |
|
credit access business does not assess additional fees under the |
|
extended payment plan and the credit access business fully |
|
describes the terms of the extended payment plan, including all due |
|
dates and the amount due on each due date, to the consumer before |
|
the consumer enters into the extended payment plan. An extended |
|
payment plan offered under this subsection is not required to |
|
comply with Section 393.638. |
|
(g) A credit access business shall accept a partial payment |
|
that complies with Section 393.629(c) paid by a consumer or on |
|
behalf of a consumer to pay down outstanding principal owed under a |
|
single-payment deferred presentment transaction that the credit |
|
access business obtained for the consumer or assisted the consumer |
|
in obtaining. |
|
Sec. 393.635. MULTIPLE-PAYMENT DEFERRED PRESENTMENT |
|
TRANSACTION. (a) The sum of all fees, principal, interest, and |
|
other amounts due under any scheduled payment of an extension of |
|
consumer credit in the form of a multiple-payment deferred |
|
presentment transaction that a credit access business obtains for a |
|
consumer or assists a consumer in obtaining may not exceed: |
|
(1) 10 percent of the consumer's gross monthly income, |
|
if the consumer's gross annual income is less than the reference |
|
amount; or |
|
(2) 15 percent of the consumer's gross monthly income, |
|
if the consumer is not described by Subdivision (1) and is not a |
|
military borrower to whom a different limit applies under federal |
|
law. |
|
(b) An extension of consumer credit in the form of a |
|
multiple-payment deferred presentment transaction that a credit |
|
access business obtains for a consumer or assists a consumer in |
|
obtaining may not be payable by the consumer in more than 12 |
|
installments or have an original term of more than 180 days, and the |
|
loan agreement must specify the number, date, and total amount due |
|
with regard to each installment. |
|
(c) An original or refinanced extension of consumer credit |
|
in the form of a multiple-payment deferred presentment transaction |
|
that a credit access business obtains for a consumer or assists a |
|
consumer in obtaining must be payable on a fully amortizing, |
|
declining-principal-balance basis with substantially equal |
|
payments. If a credit access business precomputes its fees under a |
|
multiple-payment deferred presentment transaction and a consumer |
|
prepays in full the extension of consumer credit in that form, the |
|
credit access business shall refund any unearned fees to the |
|
consumer. |
|
(d) The first installment of an extension of consumer credit |
|
in the form of a multiple-payment deferred presentment transaction |
|
that a credit access business obtains for a consumer or assists a |
|
consumer in obtaining may not be due before the 10th day after the |
|
date the consumer enters into the loan agreement. An installment |
|
may not be due before the 14th day or after the 31st day after the |
|
date a previous installment is due. |
|
(e) An extension of consumer credit in the form of a |
|
multiple-payment deferred presentment transaction that a credit |
|
access business obtains for a consumer or assists a consumer in |
|
obtaining may not be refinanced, may not include more than 12 |
|
installments, and may not have a term that exceeds 180 days, |
|
excluding an extended payment plan offered in compliance with |
|
Section 393.638. |
|
(f) A credit access business may offer a consumer an |
|
extended payment plan if the extended payment plan complies with |
|
Section 393.638 and if the credit access business fully describes |
|
the terms of the extended payment plan, including all due dates and |
|
the amount due on each due date, to the consumer before the consumer |
|
enters into the extended repayment plan. |
|
Sec. 393.636. SINGLE-PAYMENT MOTOR VEHICLE TITLE LOAN. |
|
(a) The sum of all fees, principal, interest, and other amounts |
|
due under an extension of consumer credit in the form of a |
|
single-payment motor vehicle title loan that a credit access |
|
business obtains for a consumer or assists a consumer in obtaining, |
|
excluding fees, may not exceed the lesser of: |
|
(1) six percent of the consumer's gross annual income, |
|
if the consumer's gross annual income is less than the reference |
|
amount; |
|
(2) eight percent of the consumer's gross annual |
|
income, if the consumer is not described by Subdivision (1) and is |
|
not a military borrower to whom a different limit applies under |
|
federal law; or |
|
(3) 70 percent of the retail value of the motor vehicle |
|
securing the debt. |
|
(b) The term of an original or refinanced extension of |
|
consumer credit in the form of a single-payment motor vehicle title |
|
loan that a credit access business obtains for a consumer or assists |
|
a consumer in obtaining may not be less than 30 days or longer than |
|
35 days. |
|
(c) An extension of consumer credit in the form of a |
|
single-payment motor vehicle title loan that a credit access |
|
business obtains for a consumer or assists a consumer in obtaining |
|
may not be refinanced more than three times. The combined terms of |
|
the original extension of consumer credit and any refinanced |
|
extensions of consumer credit, excluding an extended payment plan |
|
offered in compliance with Subsection (f) or Section 393.638, may |
|
not exceed 90 days. The credit access business shall fully describe |
|
the terms of an extended payment plan, including all due dates and |
|
the amount due on each due date, to the consumer before the consumer |
|
enters into the extended payment plan. |
|
(d) If a consumer who has not entered into an extended |
|
payment plan with the credit access business in the preceding 12 |
|
months refinances a single-payment motor vehicle title loan for the |
|
third time: |
|
(1) the credit access business must offer at least one |
|
extended payment plan to the consumer before initiating any |
|
activities to repossess the vehicle securing the debt; |
|
(2) the consumer may request, prior to the offer |
|
required by Subdivision (1) being made, an extended payment plan at |
|
any time on or after the date the consumer refinances the motor |
|
vehicle title loan for the third time and on or before the fifth day |
|
after the date on which the third refinance must be repaid in full; |
|
(3) to comply with the requirement of Subdivision (1), |
|
the credit access business shall send a written notice to the |
|
consumer disclosing the following: |
|
(A) the amount due under the current terms of the |
|
extension of consumer credit if the consumer declines an extended |
|
payment plan; |
|
(B) the amounts due on each of the installment |
|
dates of an extended payment plan; and |
|
(C) the date by which the consumer must accept |
|
the extended payment plan in writing, which date shall be at least |
|
five days after the date of such notice; |
|
(4) the credit access business may not repossess the |
|
vehicle securing the debt unless: |
|
(A) the consumer fails to accept the extended |
|
payment plan in writing on or before the deadline contained in the |
|
notice required by Subdivision (3); |
|
(B) the consumer declines the extended payment |
|
plan; or |
|
(C) the consumer fails to make a payment required |
|
by an extended payment plan that the consumer accepted; and |
|
(5) if the consumer declines an extended payment plan |
|
that a credit access business is required to offer under |
|
Subdivision (1), the consumer must sign an extended payment plan |
|
waiver on a form prescribed by the finance commission. |
|
(e) An extended payment plan required to be offered under |
|
Subsection (d) must comply with Section 393.638. |
|
(f) A credit access business may offer a consumer an |
|
extended payment plan that provides the consumer with additional |
|
time to repay the debts obtained through a single-payment motor |
|
vehicle title loan, either before or after the consumer refinances |
|
the single-payment motor vehicle title loan for the third time, |
|
more than once in a 12-month period so long as the credit access |
|
business does not assess additional fees under the extended payment |
|
plan and the credit access business fully describes the terms of the |
|
extended payment plan, including all due dates and the amount due on |
|
each due date, to the consumer before the consumer enters into the |
|
extended payment plan. An extended payment plan offered under this |
|
subsection is not required to comply with Section 393.638. |
|
(g) A credit access business shall accept a partial payment |
|
that complies with Section 393.629(c) paid by a consumer or on |
|
behalf of a consumer to pay down outstanding principal owed under a |
|
single-payment motor vehicle title loan that the credit access |
|
business obtained for the consumer or assisted the consumer in |
|
obtaining. |
|
Sec. 393.637. MULTIPLE-PAYMENT MOTOR VEHICLE TITLE LOAN. |
|
(a) The amount advanced to a consumer under an extension of |
|
consumer credit in the form of a multiple-payment motor vehicle |
|
title loan that a credit access business obtains for a consumer or |
|
assists a consumer in obtaining, excluding fees, may not exceed 70 |
|
percent of the retail value of the motor vehicle securing the debt. |
|
(b) The sum of all fees, principal, interest, and other |
|
amounts due under any scheduled payment of an extension of consumer |
|
credit in the form of a multiple-payment motor vehicle title loan |
|
that a credit access business obtains for a consumer or assists a |
|
consumer in obtaining may not exceed: |
|
(1) 20 percent of the consumer's gross monthly income, |
|
if the consumer's gross annual income is less than the reference |
|
amount; or |
|
(2) 30 percent of the consumer's gross monthly income, |
|
if the consumer is not described by Subdivision (1) and is not a |
|
military borrower to whom a different limit applies under federal |
|
law. |
|
(c) An extension of consumer credit in the form of a |
|
multiple-payment motor vehicle title loan that a credit access |
|
business obtains for a consumer or assists a consumer in obtaining |
|
must be payable on a fully amortizing, declining-principal-balance |
|
basis with substantially equal payments. If a credit access |
|
business precomputes its fees under a multiple-payment motor |
|
vehicle title loan and a consumer prepays the loan in full, the |
|
credit access business shall refund any unearned fees to the |
|
consumer. |
|
(d) An extension of consumer credit in the form of a |
|
multiple-payment motor vehicle title loan that a credit access |
|
business obtains for a consumer or assists a consumer in obtaining |
|
may not be payable by the consumer in more than six installments, |
|
and the loan agreement must specify the number, date, and total |
|
amount due with regard to each installment. |
|
(e) The first installment of an extension of consumer credit |
|
in the form of a multiple-payment motor vehicle title loan that a |
|
credit access business obtains for a consumer or assists a consumer |
|
in obtaining may not be due before the 10th day after the date the |
|
consumer enters into the loan agreement. A subsequent installment |
|
may not be due before the 28th day after the date the previous |
|
installment of the loan is due. |
|
(f) An extension of consumer credit in the form of a |
|
multiple-payment motor vehicle title loan that a credit access |
|
business obtains for a consumer or assists a consumer in obtaining |
|
may not be refinanced and the loan term may not exceed 180 days, |
|
except as provided by Subsection (g). |
|
(g) A credit access business may not initiate any activities |
|
to repossess the vehicle securing the debt under a multiple-payment |
|
motor vehicle title loan that a credit access business obtains for a |
|
consumer or assists a consumer in obtaining before offering the |
|
consumer at least one extended payment plan. An extended payment |
|
plan may cause the extension of consumer credit to extend beyond 180 |
|
days so long as the extended payment plan complies with Section |
|
393.638 and the credit access business fully describes the terms of |
|
the extended payment plan, including all due dates and the amount |
|
due on each due date, to the consumer before the consumer enters |
|
into the extended payment plan. |
|
(h) If the credit access business is required to offer a |
|
consumer an extended payment plan under Subsection (g), the credit |
|
access business shall send a written notice to the consumer |
|
disclosing the following: |
|
(1) the amount due under the current terms of the |
|
extension of consumer credit if the consumer declines an extended |
|
payment plan; |
|
(2) the amounts due on each of the installment dates of |
|
an extended payment plan; and |
|
(3) the date by which the consumer must accept the |
|
extended payment plan in writing, which date shall be at least five |
|
days after the date of such notice. |
|
(i) The credit access business may not repossess the vehicle |
|
securing the debt unless: |
|
(1) the consumer fails to accept the extended payment |
|
plan in writing on or before the deadline contained in the notice |
|
required by Subsection (h)(3); |
|
(2) the consumer declines the extended payment plan; |
|
or |
|
(3) the consumer fails to make a payment required by an |
|
extended payment plan that the consumer accepted. |
|
(j) If the consumer declines the extended payment plan, the |
|
consumer must sign an extended payment plan waiver on a form |
|
prescribed by the finance commission. |
|
Sec. 393.638. EXTENDED PAYMENT PLAN REQUIREMENTS. |
|
(a) This section applies to extended payment plans required to be |
|
offered under Sections 393.634, 393.635, 393.636, and 393.637. |
|
(b) An extended payment plan must provide for payment in at |
|
least: |
|
(1) four substantially equal installments, after |
|
which the outstanding balance will be paid in full, with respect to |
|
a single-payment deferred presentment transaction or |
|
single-payment motor vehicle title loan; or |
|
(2) two substantially equal installments added to the |
|
original and refinanced term of the extension of consumer credit, |
|
after which the outstanding balance, including only the fees that |
|
would have been due under the original extension of consumer |
|
credit, will be paid in full, with respect to a multiple-payment |
|
deferred presentment transaction or multiple-payment motor vehicle |
|
title loan. |
|
(c) The period between installment payments on an extended |
|
payment plan may not be shorter than: |
|
(1) 10 days, with respect to a single-payment deferred |
|
presentment transaction; or |
|
(2) 30 days, with respect to a multiple-payment |
|
deferred presentment transaction, a single-payment motor vehicle |
|
title loan, or a multiple-payment motor vehicle title loan. |
|
(d) The first payment owed under an extended payment plan |
|
may not be due before the 10th day after the date the consumer |
|
requests an extended payment plan. |
|
(e) A credit access business may not assess additional fees |
|
or assist a consumer in obtaining additional extensions of consumer |
|
credit if the consumer is paying an extension of credit under an |
|
extended payment plan. |
|
(f) A consumer may pay in full a debt subject to an extended |
|
payment plan at any time without prepayment penalties. |
|
(g) A person may not engage in debt collection or vehicle |
|
repossession activities for a debt subject to an extended payment |
|
plan if the consumer is in compliance with the extended payment |
|
plan. |
|
(h) A person may not use a device, subterfuge, or pretense |
|
to evade the extended payment plan requirements and limitations |
|
imposed on a credit access business under this subchapter. |
|
Sec. 393.639. REFINANCES. (a) Any refinance of an |
|
extension of consumer credit that a credit access business obtains |
|
for a consumer or assists a consumer in obtaining: |
|
(1) must be authorized under this subchapter; |
|
(2) must be in the same form as the original extension |
|
of consumer credit; and |
|
(3) must meet all the requirements applicable to the |
|
original extension of consumer credit, including the duration, |
|
transaction, and extended payment plan requirements under this |
|
subchapter, including the applicable income-based or vehicle |
|
value-based limitations under Section 393.634(a), 393.635(a), |
|
393.636(a), or 393.637(b), except as otherwise provided by this |
|
chapter. |
|
(b) For purposes of this section, a single-payment deferred |
|
presentment transaction, a multiple-payment deferred presentment |
|
transaction, a single-payment motor vehicle title loan, and a |
|
multiple-payment motor vehicle title loan are the different forms |
|
of extensions of consumer credit that a credit access business may |
|
obtain for a consumer or assist a consumer in obtaining. |
|
(c) The terms of a refinanced extension of consumer credit |
|
may be the same as or different from the terms of the original |
|
extension of consumer credit. |
|
(d) A person may not use a device, subterfuge, or pretense |
|
to evade the refinance requirements and limitations imposed on a |
|
credit access business under this subchapter. |
|
Sec. 393.640. RULES. The finance commission shall adopt |
|
any rules necessary to implement Sections 393.629-393.639. |
|
SECTION 16. Section 411.095, Government Code, is amended to |
|
read as follows: |
|
Sec. 411.095. ACCESS TO CRIMINAL HISTORY RECORD |
|
INFORMATION: CONSUMER CREDIT COMMISSIONER. The consumer credit |
|
commissioner is entitled to obtain from the department criminal |
|
history record information that relates to a person who is an |
|
applicant for or holder of a license under Chapter 342, 347, 348, |
|
351, 353, [or] 371, or 393, Finance Code. |
|
SECTION 17. Sections 393.221 and 393.601, Finance Code, are |
|
repealed. |
|
SECTION 18. The consumer credit commissioner shall |
|
establish and implement the database under Section 342.607, Finance |
|
Code, as added by this Act, not later than January 1, 2016, and |
|
shall prescribe the date by which a person who offers, services, or |
|
brokers a deferred presentment transaction must begin submitting |
|
data as provided by that section. |
|
SECTION 19. The changes in law made by this Act apply only |
|
to an extension of consumer credit made on or after the effective |
|
date of this Act. An extension of consumer credit made before the |
|
effective date of this Act is governed by the law in effect on the |
|
date the extension of consumer credit was made, and the former law |
|
is continued in effect for that purpose. For purposes of this |
|
section, a refinance or renewal of an extension of consumer credit |
|
is considered made on the date the extension of consumer credit |
|
being refinanced or renewed was made. |
|
SECTION 20. Section 393.310, Finance Code, as added by this |
|
Act, applies only to a contract entered into on or after the |
|
effective date of this Act. A contract entered into before the |
|
effective date of this Act is governed by the law in effect when the |
|
contract was entered into, and the former law is continued in effect |
|
for that purpose. |
|
SECTION 21. This Act takes effect September 1, 2015. |