2021 Texas Legislature
Bills Supporting Financial Stability for Texas Families
RAISE Texas advances policies that foster financial success for low- and moderate-income Texans. In 2021, RAISE Texas supported bills that provide protections against usury and address lending abuses that undermine investments in family financial stability.
Bills Protecting Consumers During and After Disasters
H.B. 1626 (Lucio) – Protecting Consumers during and after Disaster: Exempts use of credit scoring information in insurance pricing during a disaster and two years after a disaster.
H.B. 2624 (Ordaz Perez) – would provide: (1) that the annual percentage rate (APR) of an extension of consumer credit in the form of a deferred presentment transaction (including a payday or motor vehicle title loan) that is entered into by a consumer residing in a disaster area and that a credit access business obtains for the consumer or assists the consumer in obtaining may not exceed 30% during the designated disaster period and the two-year period immediately following; and (2) the APR of that extension of consumer credit is calculated on total charges, including interest, lender charges and fees.
Bills Regulating Credit Service Organizations (CSO)
H.B. 206 (Bernal) – would provide statewide regulation of payday and auto title lenders, expanding statewide the regulations passed in at least 46 Texas cities. The bill would provide that a municipal ordinance regulating credit access businesses is not preempted by state law and, if a municipal ordinance conflicts with a provision of state law, the more stringent regulation controls. This bill is a positive step forward in reforming predatory lending practices.
H.B. 4116 (C. Turner) – would prohibit a CSO from obtaining an extension of consumer credit for a customer or assist a customer in obtaining an extension of consumer credit unless the organization is licensed by the Office of Consumer Credit Commissioner.
Bills Addressing CSO Lending Abuses
H.B. 417 (Walle) – would provide that a CSO or a CSO representative may not: (1) unless the CSO or its representative has evidence sufficient prove that the consumer has committed theft or issued a bad check, threaten or file a criminal complaint related to an extension of consumer credit or provision of credit services against the consumer; or (2) refer or threaten to refer a consumer to a prosecutor for the collection and processing of a check or similar sight order that was issued in relation to an extension of consumer credit.
H.B. 1916 (C. Turner) – would prohibit a credit access business from making a telemarketing call to a consumer whose name and telephone number are on the Texas no-call list.
- H.B. 2813 (C. Turner) – would provide that the APR of an extension of consumer credit is calculated on total charges (interest, lender charges, fees) and the APR of an extension of consumer credit that CSO obtains for a consumer or assists a consumer in obtaining may not exceed 36%.
H.B. 3391 (C. Turner) – would prohibit third-party fees to arrange or guarantee certain extensions of consumer credit if the extension of credit is secured by a non-purchase money security interest in personal property or is unsecured and the proceeds of the extension of credit are used for personal, family, or household purposes. The amount of a fee contracted for, charged, or received in violation of this prohibition is considered interest for usury purposes.
Compiled from very helpful legislative resources created by Texas Appleseed, Texas Fair Lending Alliance and Texas Municipal League.