Credit Access Business rules for 2017 that you need to know!

by The CAB Man Texas on January 13, 2017

New Technical Rules for 2017 you should be aware of.  Did you know there are new rules related to the application for new licenses, transferring a license, and criminal history of CAB owners?  Much of this was covered during CAB Consulting’s “CAB II” project that many clients and members took advantage of. 

*The language for rules and transfers removes the part mentioning that you need to wait on the OCCC’s approval to operate a CAB while the license is being transferred. The transformer assumes all responsibility of the license until the license has been transferred to the transferee. 

**Criminal History can affect license holders. This affects anyone with a State license from a concealed handgun license to a Credit Access Business license. In the eyes of Texas, it is a privilege to maintain a Texas license, and therefore license holders must be law abiding residents.  

Here are several areas of infraction that could compromise your CAB: 

Theft, assault, any offense that involves misrepresentation, deceptive practices or making false or misleading statements. 

Any offense that involves breach of trust or other fiduciary duty.

Any criminal violation of a statute governing credit transactions or debt collection. 

Failure to file a government report, filing a false report or tampering with a government record. 

Here is a link to the rules: http://occc.texas.gov/sites/default/files/uploads/pub/rules/cab-adoption-fc-010517.pdf 

This blog post was written by Michael Brown, President of CAB Consulting and the Texas Organization of Financial Service Centers.  He can be reached at 214-293-8676, or Michael@CreditAccessBusiness.com.

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Legislative Session: (3) bills as of last week, this is the 4th

by The CAB Man Texas on January 12, 2017

New bill: HB 877, from Chris Turner (Democrat out of Tarrant County, Represents Grand Prairie & portions of Arlington).

Caption: Relating to prohibiting certain telemarketing calls by a credit access business.
A credit access business or a representative of a credit access business may not make a telemarketing call, as defined by Section 304.002, Business & Commerce Code, to a consumer whose name and telephone number are on the Texas no-call list maintained under Subchapter B, Chapter 304, Business & Commerce Code.

The full text of the proposed bill mentions that you would be able to contact consumers with whom you have had done business with in the past, so long as it has not been more than 1 year since the last transaction.

Comments:  Our clients and Members to not typically “telemarket” or use outside telemarketing firms.  We are not aware of many CABs who do this but would be interested to see how “telemarketing” is defined.  Stands to reason that if someone has asked not to be telemarketed to that they are not telemarketed to.  Not sure why it is worth the effort to put this bill out.

Link: http://www.capitol.state.tx.us/Search/DocViewer.aspx?ID=85RHB008771B&QueryText=%22credit+access%22&DocType=B

This blog post was written by Michael Brown, President of CAB Consulting and the Texas Organization of Financial Service Centers.  He can be reached at 214-293-8676, or Michael@CreditAccessBusiness.com.

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(3) bills already posted ahead of the 85th Texas Legislative Session

January 6, 2017

The 85th Texas Legislative Session starts on Tuesday, January 10, 2017.  At this point, (3) bills have been posted ahead of the session.  See below for information on the bills as well as a few comments. Ramon Romero (D): HB 60 Relating to requiring a credit access business to verify the vehicle identification number used to […]

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Texas Credit Access Businesses are making major contributions to the Texas Financial Education Endowment “TFEE” Fund

January 4, 2017

In an earlier blog the CAB license renewal deadline was addressed as it is coming on January 31st.  It is very much worth mentioning that each year when the CABs across Texas pay the renewal fee of $800 per location, that $200 of that goes to the Texas Financial Education Endowment Fund (http://www.tfee.texas.gov/).  It appears that […]

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Credit Access Business License renewals due by no later than December 31st

December 28, 2016

Credit Access Business (“CAB”) License renewals with the Texas Office of Consumer Credit Commissioner (“OCCC”) are due by no later than December 31st. You absolutely positively cannot miss this deadline. If you do, you will likely lose your license and have to re-apply for a new one. That is not the biggest problem – if you […]

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CFPB fines Money Tree – a good reminder

December 27, 2016

Although we are all hopeful the proposed CFPB rule will unravel in the near future, the CFPB action against Moneytree is a good reminder that we can at any time be examined by the CFPB in the same way that the OCCC can show up at our stores at any time. Specific to this particular […]

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Many more Americans need access to alternative loan or “payday” services than you may think, this is who they are…

December 17, 2016

Did you know? 7 in 10 Americans have less than $1,000 in savings in case of emergency. 34% of Americans have zero savings. 5% of Americans have relied on payday loans or similar services. Customer Demographics – per a Georgetown University McDonough School of Business study: Majority earn between $25,000 and $50,000. 90 % have a high […]

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Let’s speak the truth about the “Payday Loan Industry” for a minute

December 15, 2016

The Texas Organization of Financial Service Centers (“TOFSC”) is: An Industry Trade Association mainly comprised of small and mid-size business owners in Texas who offer short-term, small-dollar loan services.  You may be more familiar with our industry and it’s more commonly referred to name “The Payday Loan Industry.”  In fact, that term is loosely (not […]

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Operator Alert: Tell employees to pay extra close attention to cash in store

December 6, 2016

There is some funny money making the rounds in Abilene and the East Texas region.  There were two incidents recently that were uncovered.  The way money usually works is that it will circulate in a region so I want to make sure everyone is upping the amount of attention put towards identifying counterfeit bills. Incident […]

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OCCC releases CAB Quarterly Report data for 3rd Quarter 2016

December 5, 2016

  The OCCC has released the CAB Quarterly Report data for 3rd Quarter 2016 – some of the highlights are below! The average Payday Loan was $439 for single pay transactions and $557 for installment loan transactions. The average Title Loan was $1,230 for single pay transactions and $1,008 for installment loan transactions. The average […]

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