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A BILL TO BE ENTITLED
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AN ACT
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relating to a limitation on the total charges in connection with |
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certain extensions of consumer credit facilitated by a credit |
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services organization. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 393, Finance Code, is |
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amended by adding Section 393.308 to read as follows: |
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Sec. 393.308. RESTRICTION ON AMOUNT CHARGED IN CONNECTION |
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WITH EXTENSION OF CONSUMER CREDIT. Total charges in connection |
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with an extension of consumer credit that a credit services |
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organization obtains for a consumer or assists the consumer in |
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obtaining, including interest, lender charges, and any valuable |
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consideration received by the credit services organization, may not |
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exceed the permissible interest and fee and other charges for a |
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similar type of consumer loan under Subchapter E or F, Chapter 342. |
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SECTION 2. Section 393.308, Finance Code, as added by this |
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Act, applies only to an agreement entered into or renewed on or |
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after September 1, 2013, providing for amounts to be charged in |
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connection with an extension of consumer credit. An agreement |
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described by this section that is entered into or renewed before |
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September 1, 2013, is governed by the law as it existed on the date |
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the agreement was entered into or renewed, and the former law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |