Bill Text: TX HB3165 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to notice requirements for licensed lenders of deferred presentment transactions and motor vehicle certificate of title loans.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-03-18 - Referred to Pensions, Investments & Financial Services [HB3165 Detail]
Download: Texas-2011-HB3165-Introduced.html
| 82R10288 JE-D | ||
| By: Legler | H.B. No. 3165 | |
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| relating to notice requirements for licensed lenders of deferred | ||
| presentment transactions and motor vehicle certificate of title | ||
| loans. | ||
| 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; [ |
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| 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, 2011. | ||
