By: Turner of Tarrant H.B. No. 3638

A BILL TO BE ENTITLED

AN ACT

relating to reports for credit access businesses required by the consumer credit commissioner; amending provisions subject to a criminal penalty.

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

SECTION 1. Sections 393.622(a) and (b), 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 and [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.

(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 2. 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 report with the commissioner on a form prescribed by the commissioner that provides the following information relating to extensions of consumer credit [described by Section 393.602(a)] during the preceding quarter:

(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; and

(9) [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) A credit access business shall file an annual report with the commissioner for each licensed location on a form prescribed by the commissioner that provides the following information relating to extensions of consumer credit during the preceding year:

(1) the number of extensions of consumer credit paid in full or otherwise closed for reduced payoff without a refinance;

(2) the number of refinances of extensions of consumer credit entered into before the extensions of consumer credit were paid in full or otherwise closed for a reduced payoff;

(3) the total amount of fees charged by the credit access business in connection with extensions of consumer credit;

(4) the number of consumers whom the credit access business assisted in obtaining an extension of consumer credit;

(5) the number of consumers refinancing the extensions of consumer credit described by Subdivision (2);

(6) the number of consumers refinancing more than once the extensions of consumer credit described by Subdivision (2);

(7) the total dollar amount of extensions of consumer credit that the credit access business assisted consumers in obtaining;

(8) for motor vehicles surrendered or repossessed under the terms of extensions of consumer credit in the form of motor vehicle title loans obtained by the business for consumers or that the business assisted consumers in obtaining:

(A) the median amount of cash advanced under the extensions of consumer credit;

(B) the total dollar amount of fees collected by the credit access business from consumers before the surrender or repossession of the vehicles;

(C) the total dollar amount of fees and other charges collected by the credit access business related to the surrender or repossession of the vehicles; and

(D) the total dollar amount returned to borrowers after the sale of the surrendered or repossessed vehicles; and

(9) any related information the commissioner determines necessary.

(c) All information submitted by a credit access business to the commissioner for inclusion in a report under this section is confidential.

(d) The commissioner shall publish a statewide consolidated analysis and recapitulation of reports filed under this section that includes an analysis of:

(1) the 15 largest metropolitan statistical areas of this state;

(2) the five largest counties of this state; and

(3) the 10 largest municipalities of this state.

SECTION 3. The changes in law made by this Act apply only to the reporting of information regarding an extension of consumer credit made on or after the effective date of this Act. The reporting of information regarding 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 4. This Act takes effect September 1, 2015.