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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of credit services organizations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subchapter B, Chapter 393, |
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Finance Code, is amended to read as follows: |
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SUBCHAPTER B. REGISTRATION, LICENSING, AND DISCLOSURE STATEMENTS |
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SECTION 2. Subchapter B, Chapter 393, Finance Code, is |
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amended by adding Section 393.1045 to read as follows: |
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Sec. 393.1045. LICENSE REQUIRED FOR SERVICES FOR CERTAIN |
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LOANS. (a) This section applies only to a credit services |
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organization that obtains, facilitates, or assists a consumer to |
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obtain an extension of consumer credit in which any of the following |
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is given as security for or in connection with the debt: |
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(1) a motor vehicle certificate of title, except as |
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provided by Subsection (f); |
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(2) the consumer's personal check to be cashed or |
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deposited at a designated future date; or |
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(3) an authorization to debit at a designated future |
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date a deposit account maintained by the consumer. |
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(b) A credit services organization must be licensed by the |
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Office of Consumer Credit Commissioner as provided by this section |
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to engage in an activity described by Subsection (a). |
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(c) The Office of Consumer Credit Commissioner shall: |
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(1) establish disclosure requirements for licensed |
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credit services organizations in addition to the requirements of |
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Section 393.105; |
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(2) adopt policies prohibiting licensed credit |
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services organizations from harassing and intimidating consumers |
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in connection with an extension of consumer credit; |
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(3) establish a data collection mechanism to enable |
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the office to appropriately monitor compliance of credit services |
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organizations with this section, Section 393.105, and Subchapters |
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C, D, and E; and |
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(4) enter into a memorandum of understanding with the |
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office of the attorney general to investigate credit services |
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organizations for potential violations of a requirement of this |
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section or a rule adopted under this section. |
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(d) The Finance Commission of Texas shall adopt rules as |
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necessary: |
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(1) to establish procedures for issuing, renewing, and |
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enforcing a license under this section; |
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(2) to set a maximum fee for the services to be |
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performed by a credit services organization in connection with an |
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activity described by Subsection (a); and |
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(3) for the administration of this section. |
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(e) A credit services organization may not evade the |
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application of this section or a rule adopted under this section by |
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use of any device, subterfuge, or pretense. Characterization of a |
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required fee as a purchase of a good or service in connection with |
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an extension of credit to which this section applies is a device, |
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subterfuge, or pretense for the purposes of this section. |
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(f) Subsection (a)(1) does not apply to an extension of |
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consumer credit for the express purpose of financing the purchase |
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of a motor vehicle used as security for the debt. |
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SECTION 3. Not later than October 1, 2009, the Finance |
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Commission of Texas shall adopt rules required by Section 393.1045, |
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Finance Code, as added by this Act. |
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SECTION 4. A credit services organization is not required |
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to obtain a license under Section 393.1045, Finance Code, as added |
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by this Act, until January 1, 2010. |
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SECTION 5. This Act takes effect September 1, 2009. |