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A BILL TO BE ENTITLED
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AN ACT
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relating to increasing the interest rate and maximum reference base |
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amount of certain consumer loans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 342.201(e), Finance Code, is amended to |
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read as follows: |
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(e) A loan contract under this chapter that is not secured |
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by real property may provide for a rate or amount of interest |
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computed using the true daily earnings method or the scheduled |
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installment earnings method that does not exceed: |
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(1) 36 [30] percent a year on that part of the cash |
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advance that is less than or equal to the amount computed under |
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Subchapter C, Chapter 341, using the reference base amount of $500; |
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(2) 24 percent a year on that part of the cash advance |
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that is more than the amount computed for Subdivision (1) but less |
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than or equal to an amount computed under Subchapter C, Chapter 341, |
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using the reference base amount of $1,050; and |
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(3) 18 percent a year on that part of the cash advance |
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that is more than the amount computed for Subdivision (2) but less |
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than or equal to an amount computed under Subchapter C, Chapter 341, |
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using the reference base amount of $2,500. |
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SECTION 2. Section 342.251, Finance Code, is amended to |
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read as follows: |
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Sec. 342.251. MAXIMUM CASH ADVANCE. The maximum cash |
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advance of a loan made under this subchapter is an amount computed |
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under Subchapter C, Chapter 341, using the reference base amount of |
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$100, except that for loans that are subject to Section 342.259 the |
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reference base amount is $300 [$200]. |
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SECTION 3. Section 342.259(a), Finance Code, is amended to |
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read as follows: |
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(a) Instead of the charges authorized by Sections 342.201 |
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and 342.252, a loan made under this subchapter with a maximum cash |
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advance computed under Subchapter C, Chapter 341, using a reference |
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base amount that is more than $100 but not more than $300 [$200], |
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may provide for: |
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(1) an acquisition charge that is not more than $10; |
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and |
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(2) an installment account handling charge that is not |
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more than the ratio of $4 a month for each $100 of cash advance. |
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SECTION 4. The changes in law made by this Act apply only to |
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a loan made on or after the effective date of this Act. A loan made |
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before the effective date of this Act is governed by the law in |
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effect on the date the loan was made, and the former law is |
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continued in effect for that purpose. For purposes of this section, |
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a refinance or renewal of a loan is considered made on the date the |
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loan being refinanced or renewed was made. |
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SECTION 5. This Act takes effect September 1, 2019. |