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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 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) 30 [24] percent a year on that part of the cash |
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advance that is more than the amount computed for Subdivision (1) |
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but less than or equal to an amount computed under Subchapter C, |
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Chapter 341, using the reference base amount of $1,050; and |
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(3) 24 [18] percent a year on that part of the cash |
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advance that is more than the amount computed for Subdivision (2) |
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but less than or equal to an amount computed under Subchapter C, |
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Chapter 341, using the reference base amount of $2,500. |
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SECTION 2. The change in law made by this Act applies only |
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to a loan made on or after the effective date of this Act. A loan |
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made 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 3. This Act takes effect September 1, 2025. |