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A BILL TO BE ENTITLED
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AN ACT
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relating to the maximum permitted sum of fees, interest, and other |
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amounts due under certain extensions 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 G, Chapter 393, Finance Code, is |
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amended by adding Sections 393.629 and 393.630 to read as follows: |
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Sec. 393.629. MAXIMUM PERMITTED FEES, INTEREST, AND OTHER |
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AMOUNTS DUE UNDER AN EXTENSION OF CONSUMER CREDIT. The sum of all |
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fees, interest, and other amounts in excess of principal due under |
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an extension of consumer credit in the form of a deferred |
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presentment transaction or motor vehicle title loan that a credit |
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access business obtains for a consumer or assists a consumer in |
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obtaining may not exceed 25 percent of the principal of that |
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extension of consumer credit. |
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Sec. 393.630. RULES. The finance commission shall adopt |
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any rules necessary to implement Section 393.629. |
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SECTION 2. The changes in law made by this Act apply only to |
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an extension of consumer credit made on or after the effective date |
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of this Act. An extension of consumer credit made before the |
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effective date of this Act is governed by the law in effect on the |
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date the extension of consumer credit was made, and the former law |
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is continued in effect for that purpose. For purposes of this |
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section, a refinance of an extension of consumer credit is |
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considered made on the date the extension of consumer credit being |
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refinanced was made. |
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SECTION 3. This Act takes effect September 1, 2017. |