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