Legislation

Legislation

See below for PDF’s of the Payday Loan and Auto Title Loan related bills that have been proposed this year in Texas’ 83rd Legislative session. On the home page of www.CreditAccessBusiness.com, detailed “blog-style” summaries have been done on each. It is the pleasure of CAB Consulting to provide you with this online resource.

CAB Consulting has retained Keefer Strategies and is actively participating in the legislative conversation this year. We have aligned with many clients and TOFSC to get informed, have our voice heard, and impact the conversation in a positive way. If you would like to learn more about what our group of small to mid-size Credit Access Businesses in Texas are up to, please call Michael Brown at 214-293-8676, or contact him via email at Michael@CreditAccessBusiness.com

HB.420

HB.786

HB.886

HB.1040

HB.1715

SB.823

HB.1886

HB.2019

HB.2315

SB.1247

HB.3019

HB.3033

Leave a Comment

Currently you have JavaScript disabled. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. Click here for instructions on how to enable JavaScript in your browser.

Newsletter Welcome Page

Newsletter Welcome Page

Thank you! You’ve successfully subscribed to our Newsletter! We promise not to bug you or waste your time!

Leave a Comment

Currently you have JavaScript disabled. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. Click here for instructions on how to enable JavaScript in your browser.

House Bill 2019

House Bill 2019

by The CAB Man Texas on March 6, 2013

This bill was authored by Craddick, and is “relating to a limitation of total charges in connection with certain extensions of consumer credit facilitated by a credit service organization.” The bill states it is amending Texas Finance Code Chapter 393, subchapter D by adding 393.308 which states that the total charges on a arranged by CSO loan cannot exceed those outlined in Texas Finance Code Chapter 342, E & F. There are pending changes to Chapter 342 in SB 823 from Carona it is possible that this bill intends to correspond with that bill. Or, this could be a way to address the methods allegedly employed by operators to adapt to local ordinances. Currently, a maximum of either 24% APR or 80% APR is chargeable on “regulated lender loans” under Chapter 342. Credit Access Businesses (or at least that use of that exact term) are absent from this bill. HB 2019 would go into effect on 9-1-2013.

Click here for a PDF of HB 2019! HB.2019

Leave a Comment

Currently you have JavaScript disabled. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. Click here for instructions on how to enable JavaScript in your browser.

Previous post:

Next post:

Texas Debt Buyer Bill is set to be signed by Governor Abbott

Texas Debt Buyer Bill is set to be signed by Governor Abbott

by The CAB Man Texas on June 19, 2019

House Bill 996 a “Debt Buyer Bill” is set to be signed by Governor Abbott.  This particular bill limits when a debt buyer can initiate legal action or arbitration to collect consumer debt. It also requires specific notices to be provided to the consumer with respect to out-of-statute debt.  The new provisions are effective Sept. 1, 2019.  Texas Credit Access Businesses definitely work with debt buyers who will need to conform to the new rules.  

Also, it would be a good idea to get some input from our friends at Kilpatrick Townsend & Stockton (https://www.kilpatricktownsend.com/) on whether any of this new bill can be applied to a Credit Access Business who takes ownership of a customer debt after they pay out the third-party lender under the guaranty arrangement.  

What is the definition of a Debt Buyer:

·         A person who purchases or otherwise acquires a consumer debt from a creditor or other subsequent owner of the consumer debt (thinking out loud, is this a CAB??), regardless of whether the person collects the consumer debt, hires a third party to collect the consumer debt, or hires an attorney to pursue collection litigation in connection with the consumer debt.

The term “Debt Buyer” does not include:

·         A person who acquires a charged-off debt incidental to the purchase of a portfolio that predominantly consists of consumer debt that has not been charged off; or

·         A check services company that acquires the right to collect on a paper or electronic negotiable instrument, including an Automated Clearing House (ACH) authorization to debit an account that has not been processed.”

·         The legislation prohibits a debt buyer from bringing suit or initiating arbitration on consumer debt if the applicable statute of limitations statute of limitations on a consumer debt has expired it cannot be revived.

Consumer Notices must be provided:

With the passage of this legislation, Texas joins other jurisdictions in having to provide notices regarding the expiration of the statute of limitations. (the statute of limitations is 6 years from due date)

In Texas, one of the three required disclosures will apply depending on whether the credit reporting period has expired and whether the debt buyer credit reports.

1.      If the credit reporting period has not expired and the debt buyer does credit report this is the notice that must be sent:

“THE LAW LIMITS HOW LONG YOU CAN BE SUED ON A DEBT. BECAUSE OF THE AGE OF YOUR DEBT, WE WILL NOT SUE YOU FOR IT. IF YOU DO NOT PAY THE DEBT, [INSERT NAME OF DEBT BUYER] MAY CONTINUE TO REPORT IT TO CREDIT REPORTING AGENCIES AS UNPAID FOR AS LONG AS THE LAW PERMITS THIS REPORTING. THIS NOTICE IS REQUIRED BY LAW.”

2.      If the credit reporting period has not expired but the debt buyer does not credit report:

“THE LAW LIMITS HOW LONG YOU CAN BE SUED ON A DEBT. BECAUSE OF THE AGE OF YOUR DEBT, WE WILL NOT SUE YOU FOR IT. THIS NOTICE IS REQUIRED BY LAW.”

3.      If the credit reporting period has expired:

“THE LAW LIMITS HOW LONG YOU CAN BE SUED ON A DEBT. BECAUSE OF THE AGE OF YOUR DEBT, WE WILL NOT SUE YOU FOR IT, AND WE WILL NOT REPORT IT TO ANY CREDIT REPORTING AGENCY. THIS NOTICE IS REQUIRED BY LAW.”

The notice must be “in at least 12-point type that is boldfaced, capitalized, or underlined or otherwise conspicuously set out from the surrounding written material.”

It is important that it is mentioned that the content from this blog post was gathered  from the www.Consumerfsblog.com which is a publication of Maurice Wutscher, a financial services law firm.  Our Texas Credit Access Businesses sincerely appreciate the content which was directly cited, summarized, reorganized, and paraphrased in this post.  Here is a link to their blog / website:

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.

Leave a Comment

Currently you have JavaScript disabled. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. Click here for instructions on how to enable JavaScript in your browser.

Previous post:

Next post:

House Bill 2315

House Bill 2315

by The CAB Man Texas on March 6, 2013

This bill was authored by Villarreal, and is “relating to authorized charges for certain consumer loans.” The first section of the bill addresses loans under Chapter 342. This is an intricate bill, with many components that are outside of the traditional CSO-CAB environment. Considerable dialogue with operators, lawmakers, advocates and regulators would be required to make first make an apples to apples comparison to the proposed measures in HB 2315 and its alternatives.
The first proposed Section 342.201 would establish a maximum interest charge for certain loans in certain amounts, as dictated by Chapter 341, subsection C.
There would be limits on interest charges at certain tiers and loan amounts, and the specifics are difficult to understand with a close review of Chapter 341, subsection C. More information is needed in order to accurately report on this section.
Villarreal moves on to a recommended amendment of Chapter 342.252 that appears to coincide with SB 823 and micro loans. In this section, acquisition charges and installment account handling charges are outlined, however they appear to be incomplete as critical items have been lined out that site certain rates.

Acquisition charges:
$29 or less, an acquisition charge of ??? (“not more than $1 for each $5” was lined out)
$30 or more, an acquisition charge ??? (“that is not more than the amount equal to 1/10th of the amount of the cash advance” was lined out)
$100 and up, acquisition charge ??? (“not more than $10” was lined out)

Installment account handling charges:
$35 or less, not more than $3 per month
$35 to $70 cash advances, $3.50 per month
$70 to $99, $4 per month installment account handling charge
$100 and up, not more than $4 per month for each $100 of cash advance (aka 4% per month)

The Texas Finance Commission would need to prescribe by rule the maximum amount of an acquisition charge. And, this bill states that an acquisition charge under this subchapter is not to be considered interest.

The final section of the bill offers “Section 342.259(a),” an amendment to Chapter 342. This section provides for an “acquisition charge” (no amount named and “that is not more than $10” is lined out), and an “installment account handling charge” that is not more than the ratio of $4 a month for each $100 of cash advance.” This appears to repeat some of the same criteria as cited earlier in the bill. More correspondence is needed with Representative Villarreal’s office in order to fully grasp this bill.

This bill would go into effect on 9-1-2013.

Click here for a PDF of HB 2315! HB.2315

Leave a Comment

Currently you have JavaScript disabled. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. Click here for instructions on how to enable JavaScript in your browser.

Previous post:

Next post: