Bill Text: TX HB1350 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to a restriction on total charges charged for extensions of consumer credit that a credit services organization obtains for a consumer or assists a consumer in obtaining.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-11-15 - Filed [HB1350 Detail]
Download: Texas-2025-HB1350-Introduced.html
| 89R3558 MLH-F | ||
| By: Turner | H.B. No. 1350 | |
|
|
||
|
|
||
| relating to a restriction on total charges charged for extensions | ||
| of consumer credit that a credit services organization obtains for | ||
| a consumer or assists a consumer in obtaining. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter D, Chapter 393, Finance Code, is | ||
| amended by adding Section 393.308 to read as follows: | ||
| Sec. 393.308. RESTRICTION ON CHARGES CHARGED IN CONNECTION | ||
| WITH EXTENSIONS OF CONSUMER CREDIT. (a) For purposes of this | ||
| section, the annual percentage rate of an extension of consumer | ||
| credit is calculated including the total charges charged to the | ||
| consumer in connection with the extension of consumer credit, | ||
| including interest, lender charges, and any fees or any other | ||
| valuable consideration received by the credit services | ||
| organization or a representative of the organization. | ||
| (b) The annual percentage rate of an extension of consumer | ||
| credit that a credit services organization obtains for a consumer | ||
| or assists a consumer in obtaining may not exceed 36 percent. | ||
| SECTION 2. Section 393.602(b), Finance Code, is amended to | ||
| read as follows: | ||
| (b) Subject to Section 393.308, a [ |
||
| may assess fees for its services as agreed to between the parties. | ||
| A credit access business fee may be calculated daily, biweekly, | ||
| monthly, or on another periodic basis. A credit access business is | ||
| permitted to charge amounts allowed by other laws, as applicable. A | ||
| fee may not be charged unless it is disclosed. | ||
| SECTION 3. Section 393.308, Finance Code, as added by this | ||
| Act, applies 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. | ||
| SECTION 4. This Act takes effect September 1, 2025. | ||
