Bill Text: TX SB2277 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to increasing the interest rate and maximum reference base amount of certain consumer loans.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-03-21 - Referred to Business & Commerce [SB2277 Detail]

Download: Texas-2019-SB2277-Introduced.html

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86R1895 GRM-F
By: Buckingham S.B. No. 2277

A BILL TO BE ENTITLED
AN ACT
relating to increasing the interest rate and maximum reference base
amount of certain consumer loans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 342.201(e), Finance Code, is amended to
read as follows:
(e) A loan contract under this chapter that is not secured
by real property may provide for a rate or amount of interest
computed using the true daily earnings method or the scheduled
installment earnings method that does not exceed:
(1) 36 [30] percent a year on that part of the cash
advance that is less than or equal to the amount computed under
Subchapter C, Chapter 341, using the reference base amount of $500;
(2) 24 percent a year on that part of the cash advance
that is more than the amount computed for Subdivision (1) but less
than or equal to an amount computed under Subchapter C, Chapter 341,
using the reference base amount of $1,050; and
(3) 18 percent a year on that part of the cash advance
that is more than the amount computed for Subdivision (2) but less
than or equal to an amount computed under Subchapter C, Chapter 341,
using the reference base amount of $2,500.
SECTION 2. Section 342.251, Finance Code, is amended to
read as follows:
Sec. 342.251. MAXIMUM CASH ADVANCE. The maximum cash
advance of a loan made under this subchapter is an amount computed
under Subchapter C, Chapter 341, using the reference base amount of
$100, except that for loans that are subject to Section 342.259 the
reference base amount is $300 [$200].
SECTION 3. Section 342.259(a), Finance Code, is amended to
read as follows:
(a) Instead of the charges authorized by Sections 342.201
and 342.252, a loan made under this subchapter with a maximum cash
advance computed under Subchapter C, Chapter 341, using a reference
base amount that is more than $100 but not more than $300 [$200],
may provide for:
(1) an acquisition charge that is not more than $10;
and
(2) an installment account handling charge that is not
more than the ratio of $4 a month for each $100 of cash advance.
SECTION 4. The changes in law made by this Act apply only to
a loan made on or after the effective date of this Act. A loan made
before the effective date of this Act is governed by the law in
effect on the date the loan was made, and the former law is
continued in effect for that purpose. For purposes of this section,
a refinance or renewal of a loan is considered made on the date the
loan being refinanced or renewed was made.
SECTION 5. This Act takes effect September 1, 2019.