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A BILL TO BE ENTITLED
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AN ACT
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relating to the affordability of extension of consumer credit. |
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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. ENSURING AFFORDABILITY OF EXTENSION OF |
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CONSUMER CREDIT. A credit services organization may not obtain an |
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extension of consumer credit or provide advice or assistance to a |
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consumer with regard to obtaining an extension of consumer credit |
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unless the credit services organization finds, using independently |
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verifiable documentation of income and obligations, that the |
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consumer can reasonably repay in cash, in the time and schedule of |
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payments established by contract and by all applicable law, the |
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extension of consumer credit and all associated fees and costs and |
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pay all known obligations concurrently. The credit services |
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organization must retain all documentation used to establish the |
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affordability of an extension of consumer credit. |
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SECTION 2. This Act takes effect September 1, 2017. |