Texas Legislative Session as of this week: (7) bills related to Credit Access Businesses

by The CAB Man Texas on February 10, 2017

  • HB 60, Introduced by Romero Jr: Requiring a Credit Access Business to verify the vehicle identification number used to obtain a motor vehicle.
  • HB 197, Introduced by Bernal: Relating to the contracts and other documents issued by a Credit Access Business (requiring to have English & Spanish). Also, to read the contract in its entirety to consumers who cannot read.
  • HB 877, Introduced by Chris Turner: Relating to certain telemarketing calls by a Credit Access Business. Prevents a CAB or an employee of a CAB to make telemarketing calls to consumers who are on the Texas No Call List.
  • HB 1134, Introduced by Republican Tom Craddick wishes to add that City Ordinances should not be pre-empted and that Cities should be allowed to regulate State Licensed Business’s, such as Credit Access Business’s. In fact, the language used in Craddick’s proposed bill goes on to state that “this chapter does not preempt a municipal ordinance regulated a CAB or any form of an extension of consumer credit that a CAB is authorized to obtain for a consumer or assist a consumer in obtaining. If a municipal ordinance described by Subsection (a) conflicts with a provision of this chapter regulating a CAB, the more stringent regulation controls to the extent of the conflict”
  • First, we must remind you that Tom Craddick proposed similar bills in the last session two years ago, in 2015.
  • How this can affect us. Right now, only a couple of cities are enforcing the ordinance or at a minimum sending city employees out to ensure that CAB’s are registered. If this rule were to go into effect, the city would not need to enforce the Ordinance, it will be under a State Law, allowing OCCC examiners to enforce City Ordinance Regulations, which they do not currently do right now.
  • SB 560, Introduced by Hannock. This bill is to empower the OCCC to enforce and apply penalties for those CAB’s who charge a surcharge on those paying via debit or credit card. To the best of our knowledge, none of our members are doing this anyways. If you charge someone a fee for paying with their debit or credit card, you are already out of compliance as this a state-wide rule that is currently in existence, one which carries some hefty penalties by the Attorney General’s office. This Bill by Hannock applies a $500.00 fine for each infraction.
  • HB 975, Introduced by Giddings, relating to the threat or pursuit of criminal charges against a consumer in association with certain extensions of consumer credit and providing a civil penalty for the Credit Access Business.
  • This bill is interesting as it states that a CAB cannot file a criminal charge against a consumer, unless the CAB has “extrinsic evidence sufficient to prove that the consumer committed an offense”. If a CAB or anyone for the matter could determine what sufficient evidence of a crime is, then that would essentially eliminate District Attorneys as they are the officials in the capacity to make that determination of whether a case should be brought against someone or not. This one may not last too long.
  • HB 741, Introduced by Bernal: Relating to the affordability of extension of consumer credit. This bill is extremely vague as well. It states that a CSO must verify a consumer’s income, and establish that the income verified to be used demonstrates that a consumer can reasonably repay the loan in cash.

 

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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