Bill Text: TX HB476 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to the maximum permitted rate of interest, sum of fees, and other amounts that may be charged in connection with deferred presentment transactions; creating a criminal offense.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-11-12 - Filed [HB476 Detail]
Download: Texas-2025-HB476-Introduced.html
| 89R2482 MLH-D | ||
| By: Bucy | H.B. No. 476 | |
|
|
||
|
|
||
| relating to the maximum permitted rate of interest, sum of fees, and | ||
| other amounts that may be charged in connection with deferred | ||
| presentment transactions; creating a criminal offense. | ||
| 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. MAXIMUM INTEREST RATES. (a) Unless a lower | ||
| rate of interest is otherwise provided by law, the maximum rate or | ||
| amount of interest that may be contracted for, charged, or received | ||
| from a borrower is: | ||
| (1) for a deferred presentment transaction that | ||
| advances more than $300, 38.5 percent a year; and | ||
| (2) for a deferred presentment transaction that | ||
| advances not more than $300, 36 percent a year. | ||
| (b) A deferred presentment transaction entered into in | ||
| violation of this section is void and unenforceable. | ||
| (c) A lender commits an offense if the lender enters into a | ||
| deferred presentment transaction in violation of this section. An | ||
| offense under this section is a Class A misdemeanor. | ||
| SECTION 2. Subchapter G, Chapter 393, Finance Code, is | ||
| amended by adding Section 393.629 to read as follows: | ||
| Sec. 393.629. RESTRICTION ON CHARGES CHARGED IN CONNECTION | ||
| WITH DEFERRED PRESENTMENT TRANSACTIONS. (a) For purposes of this | ||
| section, the annual percentage rate of an extension of consumer | ||
| credit in the form of a deferred presentment transaction 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 access business or a | ||
| representative of the credit access business. | ||
| (b) The annual percentage rate of an extension of consumer | ||
| credit in the form of a deferred presentment transaction that a | ||
| credit access business obtains for a consumer or assists a consumer | ||
| in obtaining may not exceed: | ||
| (1) for a deferred presentment transaction that | ||
| advances more than $300, 38.5 percent; and | ||
| (2) for a deferred presentment transaction that | ||
| advances not more than $300, 36 percent. | ||
| (c) A deferred presentment transaction entered into in | ||
| violation of this section is void and unenforceable. | ||
| SECTION 3. Sections 342.606 and 393.629, Finance Code, as | ||
| added by this Act, apply only to a loan or extension of consumer | ||
| credit, as applicable, made on or after the effective date of this | ||
| Act. A loan or extension of consumer credit made before the | ||
| effective date of this Act is governed by the law in effect on the | ||
| date the loan or extension of consumer credit was made, and the | ||
| former law is continued in effect for that purpose. For purposes of | ||
| this section, a refinance of a loan or extension of consumer credit | ||
| is considered made on the date the loan or extension of consumer | ||
| credit being refinanced was made. | ||
| SECTION 4. This Act takes effect September 1, 2025. | ||
