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A BILL TO BE ENTITLED
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AN ACT
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relating to fees paid to certain credit services organizations in |
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connection with 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 A, Chapter 302, Finance Code, is |
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amended by adding Section 302.003 to read as follows: |
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Sec. 302.003. RESTRICTION ON CERTAIN THIRD-PARTY FEES TO |
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OBTAIN, ARRANGE, OR GUARANTEE CERTAIN EXTENSIONS OF CONSUMER |
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CREDIT. The amount of a fee paid or to be paid to a credit services |
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organization subject to Chapter 393 to assist a consumer in |
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transacting, arranging, guaranteeing, or negotiating an extension |
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of credit or to obtain for a consumer an extension of credit is |
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considered interest for usury purposes under state law if: |
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(1) the extension of credit is secured by a |
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non-purchase money security interest in personal property or is |
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unsecured; and |
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(2) the proceeds of the extension of credit are used |
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for personal, family, or household purposes. |
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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 or renewal of an extension of consumer credit |
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is considered made on the date the extension of consumer credit |
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being refinanced or renewed was made. |
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SECTION 3. This Act takes effect September 1, 2017. |