Texas OCCC issues advisory bulletin to licensees on how to remain in compliance while dealing with Harvey aftermath
Texas OCCC issues advisory bulletin to licensees on how to remain in compliance while dealing with Harvey aftermath
Our friend ROb Norcross at CSAT sent over some really good details that he had gathered in response to the OCCC issuing advisory bulletins to licensees on how to remain in compliance while dealing with Harvey aftermath. I scraped some of those details and organized them below for CAB stakeholders in Texas, and business owners in general that were affected by Harvey.
CAB Consulting and TOFSC have clients and Members in the Coastal region and many were impacted – see below!
“The Texas Office of the Consumer Credit Commissioner issued an advisory bulletin reminding pawn shops of their obligations in statute and rule about safeguarding pledged goods, record retention requirements and relocating to temporary locations (see link in the email below).
There are no similar provisions in Texas Finance Code Chapter 393 for credit access businesses. Sections 83.308 (b) and (c) in Title 7, Part 5 of the Texas Administrative Code addresses the relocation of transactions from one store to the other Section (c). Section (b) contains the notice requirements for customers and to the OCCC. Section (c) also provides for a waiver of the 5 day notice period by the Commissioner in cases of emergency.
If one of your stores is damaged, and you choose to send customers to other nearby stores, please take care to follow these procedures. The provisions of your contracts with your customers will govern issues related to due dates, fee calculations, etc.
The Code prohibits the relocation of a CAB store unless 30 days’ notice is given to the OCCC. There is no waiver provision for an emergency. However, if one of your stores — that is not near another store — is damaged, please contact the OCCC if a temporary location is the only reasonable solution to protect your customers. Despite the absence of a waiver provision in the statute, the OCCC has made reasonable accommodations to protect consumers with all types of licensees in the case of emergency.
County Sheriff’s Office
If one of your employees has a question about local hurricane relief activities, law enforcement procedures during/after a hurricane, customers applying for federal assistance, shelter availability, etc., please do not hesitate to contact the local county sheriff’s department. Sheriff’s offices are a critical source of information during disaster recovery efforts. They are trained to navigate the varying levels and overlaps of local, state and federal bureaucracy and often serve as a counties’ switchboard during disaster recovery.
Do not spend hours on the telephone being transferred from FEMA official to FEMA official — call your local county sheriff’s office. They will (literally) tell you where to go…
IRS Extends Filing Deadlines for Hurricane Harvey Victims
The Internal Revenue Service is giving Hurricane Harvey victims extra time to file individual and business tax returns and to make certain tax payments in 18 Texas counties because of the “devastating storm.” Businesses and individuals affected by making quarterly estimated tax payments on September 15th and January 16th now have until January 31st to file tax returns and pay taxes that were during those times.
Vehicle Titling and Registration Requirements Suspended
Texas residents in counties impacted by Hurricane Harvey will not have to worry about vehicle titling and registration requirements for the next 45 days. Governor Greg Abbott suspended certain statutes related to the enforcement of title and registration laws in the 58 counties included in the state’s disaster declaration.
Customer Inquiries to the OCCC
We are working closely with the Office of the Consumer Credit Commissioner to help them process questions received from customers efficiently. Every CAB transaction contract, and most disclosures, include the name, telephone number, and the email address of the OCCC.
Every time a consumer makes a complaint to the OCCC, the agency is required to open a file, contact the consumer, contact the CAB/lender, make a determination about a resolution for the complaint, and notify both parties in writing before closing the file.
However, after natural disasters, the agency typically receives questions from consumers in addition to complaints. If your company would like to designate a point person to address questions the OCCC may receive from your customers, please let me know.
We will give the OCCC the name, telephone number and email address of your designee so the OCCC can refer questions directly to you. We want to give the OCCC every incentive to treat as many inquiries as questions, and not complaints (and staff prefers to open as few complaint files as possible).
Texas Association of Business Hotline
TAB has established a hotline for businesses to connect to the resources they need as rebuilding begins. The hotline number is 512-637-7714. The hotline is available to all businesses. It is not limited to TAB members. You can also sign up to provide services as rebuilding begins in southeast Texas. For more information, visit: www.texbiz.org/2017/08/25/hurricane-harvey/.”
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.
OCCC Examinations in Full Swing
OCCC Examinations in Full Swing
Good afternoon Credit Access Business World! For those of you who are out and about on the internet today doing a little research on OCCC CAB Compliance, OCCC Audits, Credit Access Business licensing, etc, you most likely will happen upon this blog post. I have been working with Credit Access Businesses on their compliance, the OCCC quarterly reports, and examination preparation. Over the last few weeks there has been a definite up-tick in word on the street about the “Audit.” The OCCC is calling them “Examinations” and they began in mid-April.
In December 2011, I met with the OCCC and was given some hi-lights of what an examination would be focused. My recommendation is that you focus on Chapter 393 of the Texas Finance Code, HB 2592, and HB 2594. Make sure your loan contracts include all recommended and required disclosures, and be ready to have files reviewed. It is possible that a CAB be asked to refund some or all fees collected in 2012 if certain violations occur. So, the price is high for non-compliance and sloppy documentation.
If you have doubts, there are many options out there, contact the OCCC or CAB Consulting and Brokerage, get with attorneys who are experienced, or reach out to friendly competitors. The small to mid-size operators might be in harm’s way as they are not traditionally the ones with consultants, on staff attorneys, etc. So if you are one who fits that profile – now is the time to invest in your business, take the time to do your research, or hire someone to review it.
If you are licensed you will be examined, and it is typical for the OCCC to simply show up at your store with no prior notice. Call Michael Brown at CAB Consulting and Brokerage, we can discuss options and get going on a plan. Michael can be reached at 214-293-8676, or via email at cabconbrokerage@gmail.com.
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September 8, 2016 at 12:40 am
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Need to know your costs for getting the OCCC License completed.
Please call me at 214-207-7496
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Information for Texas CSO’s on Credit Access Business licensing
Information for Texas CSO’s on Credit Access Business licensing
There’s decent list of new requirements that the Texas CSO needs to know about when they are applying for their new Credit Access Business license this fall. Substantial input has been provided by many CSO’s in Texas as far as the new rules go, and recently I attended two stakeholder meetings in Austin at the Capitol Building to contribute my thoughts.
In the past I have not been to such a meeting and so I was all ears. At the beginning I wasn’t sure if the atmosphere was going to be contentious, if the members of the Finance Committee were going to be friendly, or if they were truly seeking input. I have heard of some heated confrontations on the House floor so I was kind of expecting the same. But, it was actually very co-operative, and the stakeholder input was asked for more often than it was given believe it or not.
From a high level – the OCCC is going to dig a little deeper this time around and take a close look at both sides of your business model versus your prior CSO application. Information about owners all the way down to 5% may be asked for, and they want important information for the lender as well. Reports are going to need to be submitted quarterly, there are new ways that you must disclose information to consumers, and certain procedures will be required that have not been mentioned before. And, there’s going to be several more fees charged to the licensee.
All in all, the forum in Austin was warm, and the word “flexible” was used often by the OCCC board members. An example of the OCCC listening to stakeholder input and their being flexible was in regards to the request for Credit Access Businesses to provide their contract forms with their CAB application. This request was met with concern, the concern was expressed, and as a result the documents will not be required with the application.
October 21 is the next date CSO’s need to be aware of – OCCC will be firming up proposed rules and rules changes. I will keep everyone posted on my blog – looking forward to your return.
Questions? Feel free to call me! Michael Brown at C.A.B. Consulting and Brokerage (214-293-8676).
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May 21, 2013 at 4:40 am
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I need info about the CAB licence what the cost you charge for this license I ready to open Mr title loans and pay day loans en eagle pass tx but I need you help to fix the premises or licenses
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August 10, 2013 at 7:41 am
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214-293-8676 call us first for an exploratory call
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Silicon Valley FinTech “Earnin” may need to buckle up for a bumpy ride.
Silicon Valley FinTech “Earnin” may need to buckle up for a bumpy ride.
The New York Times ran a bit of an “expose” on “Earnin,” an online lending FinTech that may need to buckle up for a bumpy ride…
It seems like each week there is a new Silicon Valley FinTech anti-payday loan venture that is launched with millions in funding and all the slick PR you can buy. There is a formula to the launches, and most have the disruptor mindset but at first glance to many observers, it is clearly a well disguised online payday loan business. It was stated in the Post’s article that Earnin has an $800 million valuation – how much of that do you think came from being hyped by the media? Funny thing is, much of the media that promotes these startups don’t do their homework and would tell you they despise the payday industry if you asked them. Imagine that!
Earnin has been around for several years now and the “tip” model they use is now coming into question. They don’t charge a fee for the loan they just say “tip us if you liked it” or something along those lines. The New York Post says Earnin “has been scrambling to escape regulatory heat over concerns that it has been doing illegal payday lending in the Big Apple.”. It was surprising to read that the tips being collected were $14/$100 per week. That comes to $28/$100 for two weeks. In Texas the average fee range per $100 borrowed is $20-$25/$100 so that tip is really popping up on some radars now. When you calculate the APR on $28/$100 that is getting into the 600%+ APR range which will typically cause a left leaning liberal with consumer advocacy on their mind to simultaneously combust.
Now, the New York Department of Financial Services appears to be one of those who are very hot under the collar over Earnin doing transactions with New Yorkers. As well, 11 other states are investigating Earnin for violating usury laws. New York sent a subpoena to Earnin in March, shortly after that the tip feature was turned off for New Yorkers. Earnin is now having to explain the switch off, and that loan amounts were not driven down by poor tippers which looks very bad. There were some leaks from former employees apparently. In one of those leaks “Earnin also considered going after perceived enemies. One employee suggested the company hire a private investigator to look into The Post reporter who had written the story” about them. Whoa – this is getting good!
We’ll see how it all plays out, Earnin seems to be getting lined up for a major hit on the chin for other FinTech lending disruptors with similar shell game models. Those who are out in front as Earnin has been, often times are going to have to survive the legal battles to prove out the model while others who are not quite so visible, lay low and quietly ride out the process.
Here is a link to read more from the New York Post:
https://nypost.com/2019/09/01/cash-advance-app-earnin-changes-its-tune-amid-nys-probe/
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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