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A BILL TO BE ENTITLED
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AN ACT
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relating to a restriction on charges charged for certain extensions |
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of consumer credit that a credit access business obtains for a |
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consumer or assists a consumer in obtaining. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 393, Finance Code, is |
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amended by adding Section 393.308 to read as follows: |
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Sec. 393.308. RESTRICTION ON INTEREST CHARGED IN CONNECTION |
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WITH CERTAIN EXTENSIONS OF CONSUMER CREDIT FACILITATED BY CREDIT |
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ACCESS BUSINESS. (a) In this section, "credit access business" has |
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the meaning assigned by Section 393.601. |
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(b) For purposes of this section, the annual percentage rate |
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of an extension of consumer credit is calculated including the |
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total charges charged to the consumer in connection with the |
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extension of consumer credit, including interest, lender charges, |
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and any fees or any other valuable consideration received by the |
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credit access business. |
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(c) The annual percentage rate of an extension of consumer |
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credit in the form of a deferred presentment transaction or motor |
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vehicle title loan that a credit access business obtains for a |
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consumer or assists a consumer in obtaining may not exceed 36 |
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percent. |
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SECTION 2. Section 393.602(b), Finance Code, is amended to |
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read as follows: |
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(b) Subject to Section 393.308, a [A] credit access business |
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may assess fees for its services as agreed to between the parties. |
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A credit access business fee may be calculated daily, biweekly, |
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monthly, or on another periodic basis. A credit access business is |
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permitted to charge amounts allowed by other laws, as applicable. A |
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fee may not be charged unless it is disclosed. |
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SECTION 3. The changes in law made by this Act to Chapter |
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393, Finance Code, apply only to an extension of consumer credit |
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made on or after the effective date of this Act. An extension of |
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consumer credit made before the effective date of this Act is |
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governed by the law in effect on the date the extension of consumer |
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credit was made, and the former law is continued in effect for that |
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purpose. |
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SECTION 4. This Act takes effect September 1, 2015. |