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TX HB476

Bill

Status

Introduced

11/12/2024

Primary Sponsor

John Bucy

Click for details

Origin

House of Representatives

89th Legislature Regular Session

AI Summary

  • Caps maximum interest rates on deferred presentment transactions (payday loans) at 36% annually for advances of $300 or less, and 38.5% annually for advances over $300

  • Requires the annual percentage rate calculation to include all charges to the consumer, including interest, lender charges, fees, and any other consideration received by credit access businesses

  • Makes any deferred presentment transaction that violates these interest rate caps void and unenforceable

  • Creates a Class A misdemeanor criminal offense for lenders who enter into deferred presentment transactions exceeding the maximum interest rates

  • Applies only to loans made on or after September 1, 2025, with existing loans and refinances of existing loans governed by prior law

Legislative Description

Relating to the maximum permitted rate of interest, sum of fees, and other amounts that may be charged in connection with deferred presentment transactions; creating a criminal offense.

Financial

Last Action

Referred to Pensions, Investments & Financial Services

2/28/2025

Committee Referrals

Pensions, Investments & Financial Services2/28/2025

Full Bill Text

No bill text available