84R11161 GRM-D
	By: Peña	H.B. No. 2803

	A BILL TO BE ENTITLED
	AN ACT
	relating to notice requirements for licensed lenders of deferred
	presentment transactions and motor vehicle certificate of title
	loans; adding a provision subject to a criminal penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter M, Chapter 342, Finance Code, is
	amended by adding Section 342.606 to read as follows:
	Sec. 342.606.  NOTICE REQUIREMENTS. (a) In this section,
	the term "deferred presentment transaction," as defined by Section
	341.001, is also referred to as a "payday loan."
	(b)  A lender that makes a deferred presentment transaction
	shall prominently and conspicuously post at the lender's place of
	business a sign that is at least 11 inches by 17 inches in size,
	stating in letters at least one inch high: "YOU MAY REPORT ANY
	CONCERNS OR COMPLAINTS ABOUT A PERSON THAT MAKES PAYDAY LOANS OR
	AUTO TITLE LOANS TO THE OFFICE OF CONSUMER CREDIT COMMISSIONER BY
	CALLING THE OFFICE'S CONSUMER ASSISTANCE HELP LINE AT
	1-800-538-1579."
	(c)  The lender shall post the sign required by Subsection
	(b) in:
	(1)  the general waiting area for borrowers at the
	lender's place of business; or
	(2)  each room where the lender conducts business with
	a borrower, if the lender's place of business does not have a
	general waiting area.
	(d)  On the request of a customer, the lender shall provide
	the complaint information contained in the notice to the customer
	in writing.
	SECTION 2.  Chapter 342, Finance Code, is amended by adding
	Subchapter N to read as follows:
	SUBCHAPTER N.  MOTOR VEHICLE CERTIFICATE OF TITLE LOANS
	Sec. 342.651.  DEFINITIONS. In this subchapter:
	(1)  "Lender" means a lender licensed under this
	chapter.
	(2)  "Motor vehicle certificate of title loan" means a
	loan in which a motor vehicle certificate of title is given as
	security for a loan.  The term is also referred to as an "auto title
	loan."
	Sec. 342.652.  INAPPLICABILITY OF SUBCHAPTER. This
	subchapter does not apply to a retail installment transaction under
	Chapter 348 or other loan made to finance the purchase of a motor
	vehicle.
	Sec. 342.653.  NOTICE REQUIREMENTS. (a) A lender that makes
	a motor vehicle certificate of title loan shall prominently and
	conspicuously post at the lender's place of business a sign that is
	at least 11 inches by 17 inches in size, stating in letters at least
	one inch high: "YOU MAY REPORT ANY CONCERNS OR COMPLAINTS ABOUT A
	PERSON THAT MAKES PAYDAY LOANS OR AUTO TITLE LOANS TO THE OFFICE OF
	CONSUMER CREDIT COMMISSIONER BY CALLING THE OFFICE'S CONSUMER
	ASSISTANCE HELP LINE AT 1-800-538-1579."
	(b)  The lender shall post the sign required by Subsection
	(a) in:
	(1)  the general waiting area for borrowers at the
	lender's place of business; or
	(2)  in each room where the lender conducts business
	with a borrower, if the lender's place of business does not have a
	general waiting area.
	(c)  On the request of a customer, the lender shall provide
	the complaint information contained in the notice to the customer
	in writing.
	SECTION 3.  The heading to Subchapter B, Chapter 393,
	Finance Code, is amended to read as follows:
	SUBCHAPTER B.  REGISTRATION; [AND] DISCLOSURE STATEMENTS; NOTICES
	SECTION 4.  Subchapter B, Chapter 393, Finance Code, is
	amended by adding Section 393.107 to read as follows:
	Sec. 393.107.  NOTICE REQUIREMENTS. (a) In this section:
	(1)  "Deferred presentment transaction" has the
	meaning assigned by Section 341.001.  The term is also referred to
	as a "payday loan."
	(2)  "Motor vehicle certificate of title loan" has the
	meaning assigned by Section 342.651.  The term is also referred to
	as an "auto title loan."
	(b)  This section applies only to a credit services
	organization that obtains or otherwise assists in obtaining for
	consumers an extension of consumer credit in the form of a deferred
	presentment transaction or a motor vehicle certificate of title
	loan. This section does not apply to a retail installment
	transaction under Chapter 348 or other loan made to finance the
	purchase of a motor vehicle.
	(c)  A credit services organization shall prominently and
	conspicuously post at the organization's place of business a sign
	that is at least 11 inches by 17 inches in size, stating in letters
	at least one inch high: "YOU MAY REPORT ANY CONCERNS OR COMPLAINTS
	ABOUT A PERSON THAT OBTAINS OR ASSISTS IN OBTAINING PAYDAY LOANS OR
	AUTO TITLE LOANS TO THE OFFICE OF CONSUMER CREDIT COMMISSIONER BY
	CALLING THE OFFICE'S CONSUMER ASSISTANCE HELP LINE AT
	1-800-538-1579."
	(d)  The credit services organization shall post the sign
	required by Subsection (c) in:
	(1)  the general waiting area for consumers at the
	organization's place of business; or
	(2)  in each room where the organization conducts
	business with a consumer, if the organization's place of business
	does not have a general waiting area.
	(e)  On the request of a consumer, a credit services
	organization shall provide the complaint information contained in
	the notice to the consumer in writing.
	(f)  The Finance Commission of Texas may adopt rules to
	implement this section.
	SECTION 5.  This Act takes effect September 1, 2015.