81R10450 CLG-D
 
  By: Marquez H.B. No. 3744
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of credit services organizations.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Subchapter B, Chapter 393,
  Finance Code, is amended to read as follows:
  SUBCHAPTER B. REGISTRATION, LICENSING, AND DISCLOSURE STATEMENTS
         SECTION 2.  Subchapter B, Chapter 393, Finance Code, is
  amended by adding Section 393.1045 to read as follows:
         Sec. 393.1045.  LICENSE REQUIRED FOR SERVICES FOR CERTAIN
  LOANS. (a)  This section applies only to a credit services
  organization that obtains, facilitates, or assists a consumer to
  obtain an extension of consumer credit in which any of the following
  is given as security for or in connection with the debt:
               (1)  a motor vehicle certificate of title, except as
  provided by Subsection (f);
               (2)  the consumer's personal check to be cashed or
  deposited at a designated future date; or
               (3)  an authorization to debit at a designated future
  date a deposit account maintained by the consumer.
         (b)  A credit services organization must be licensed by the
  Office of Consumer Credit Commissioner as provided by this section
  to engage in an activity described by Subsection (a).
         (c)  The Office of Consumer Credit Commissioner shall:
               (1)  establish disclosure requirements for licensed
  credit services organizations in addition to the requirements of
  Section 393.105;
               (2)  adopt policies prohibiting licensed credit
  services organizations from harassing and intimidating consumers
  in connection with an extension of consumer credit;
               (3)  establish a data collection mechanism to enable
  the office to appropriately monitor compliance of credit services
  organizations with this section, Section 393.105, and Subchapters
  C, D, and E; and
               (4)  enter into a memorandum of understanding with the
  office of the attorney general to investigate credit services
  organizations for potential violations of a requirement of this
  section or a rule adopted under this section.
         (d)  The Finance Commission of Texas shall adopt rules as
  necessary:
               (1)  to establish procedures for issuing, renewing, and
  enforcing a license under this section;
               (2)  to set a maximum fee for the services to be
  performed by a credit services organization in connection with an
  activity described by Subsection (a); and
               (3)  for the administration of this section.
         (e)  A credit services organization may not evade the
  application of this section or a rule adopted under this section by
  use of any device, subterfuge, or pretense. Characterization of a
  required fee as a purchase of a good or service in connection with
  an extension of credit to which this section applies is a device,
  subterfuge, or pretense for the purposes of this section.
         (f)  Subsection (a)(1) does not apply to an extension of
  consumer credit for the express purpose of financing the purchase
  of a motor vehicle used as security for the debt.
         SECTION 3.  Not later than October 1, 2009, the Finance
  Commission of Texas shall adopt rules required by Section 393.1045,
  Finance Code, as added by this Act.
         SECTION 4.  A credit services organization is not required
  to obtain a license under Section 393.1045, Finance Code, as added
  by this Act, until January 1, 2010.
         SECTION 5.  This Act takes effect September 1, 2009.