By: Menéndez S.B. No. 110
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to fees paid to certain credit services organizations in
  connection with certain extensions of consumer credit.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 302, Finance Code, is
  amended by adding Section 302.003 to read as follows:
         Sec. 302.003.  RESTRICTION ON CERTAIN THIRD-PARTY FEES TO
  OBTAIN, ARRANGE, OR GUARANTEE CERTAIN EXTENSIONS OF CONSUMER
  CREDIT. The amount of a fee paid or to be paid to a credit services
  organization subject to Chapter 393 to assist a consumer in
  transacting, arranging, guaranteeing, or negotiating an extension
  of credit or to obtain for a consumer an extension of credit is
  considered interest for usury purposes under state law if:
               (1)  the extension of credit is secured by a
  non-purchase money security interest in personal property or is
  unsecured; and
               (2)  the proceeds of the extension of credit are used
  for personal, family, or household purposes.
         SECTION 2.  The changes in law made by this Act apply only to
  an extension of consumer credit made on or after the effective date
  of this Act. 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 3.  This Act takes effect September 1, 2017.