A.
This article
may be known and cited as “credit access businesses regulation.”
B.
The purpose
of this article is to protect the welfare of the citizens of the city
by monitoring credit access businesses in an effort to reduce abusive
and predatory lending practices. To this end, this article establishes
a registration program for credit access businesses, imposes restrictions
on extensions of consumer credit made by credit access businesses,
and imposes recordkeeping requirements on credit access businesses.
(Ordinance 2137, 9-27-16)
As used in this article:
means a certificate of registration issued by the director
under this article to the owner or operator of a credit access business.
means an individual who is solicited to purchase or who purchases
the services of a credit access business.
is the language the consumer understands best.
has the meaning given that term in section 393.601 of the
Texas Finance Code, or successor section.
has the meaning given that term in section 393.601 of the
Texas Finance Code, or successor section.
means the city manager or the person directed by the city
manager to enforce and administer this article.
has the meaning given that term in section 393.001 of the
Texas Finance Code, or successor section.
has the meaning given that term in section 393.601 of the
Texas Finance Code, or successor section.
means any individual, corporation, organization, partnership,
association, financial institution, or any other legal entity.
means a person issued a certificate of registration for a
credit access business under this article and includes all owners
and operators of the credit access business identified in the registration
application filed under this article.
means a license to operate a credit access business issued
by the Texas Consumer Credit Commissioner under chapter 393, subchapter
G of the Texas Finance Code, or successor section.
(Ordinance 2137, 9-27-16)
A.
A person
who violates a provision of this article, or who fails to perform
an act required of the person by this article, commits an offense.
A person commits a separate offense for each and every violation relating
to an extension of consumer credit, and for each day during which
a violation is committed, permitted, or continued.
B.
An offense
under this article is punishable by a fine of not more than $500.00.
C.
A culpable
mental state is not required for the commission of an offense under
this article and need not be proved.
(Ordinance 2137, 9-27-16)
It is an affirmative defense to prosecution under this article
that at the time of the alleged offense the person was not required
to be licensed by the state as a credit access business under chapter
393, subchapter G, of the Texas Finance Code.
(Ordinance 2137, 9-27-16)
A.
A person
commits an offense if the person acts, operates, or conducts businesses
as a credit access business without a valid certificate of registration.
B.
A certificate
of registration is required for each physically separate credit access
business.
(Ordinance 2137, 9-27-16)
A.
To obtain
a certificate of registration for a credit access business, a person
must submit an application on a form provided for that purpose to
the director. The application must contain the following:
(1)
The
name, street address, mailing address, facsimile number, email address
and telephone number of the applicant.
(2)
The
business or trade name, street address, mailing address, facsimile
number, email and website address and telephone number of the credit
access business.
(3)
The
names, street addresses, mailing addresses, email addresses and telephone
numbers of all owners of the credit access business, and the nature
and extent of each person’s interest in the credit access business.
(4)
A
copy of a current, valid state license held by the credit access business
pursuant to chapter 393, subchapter G of the Texas Finance Code.
(5)
A
copy of a current, valid certificate of occupancy showing that the
credit access business is in compliance with the Code of Ordinances
of the City of Euless.
(6)
A
nonrefundable application fee as set out in the fee ordinance.
B.
An applicant
or registrant shall notify the director within 45 calendar days after
any material change in the information contained in the application
for a certificate of registration, including, but not limited to,
any change of address, including email and website addresses and telephone
number(s) and any change in the status of the state license held by
the applicant or registrant.
(Ordinance 2137, 9-27-16)
A.
The director shall issue to the applicant a certificate of registration upon receiving a completed application under Section 18-166.
B.
A certificate
of registration issued under this section must be conspicuously displayed
to the public in the credit access business. The certificate of registration
must be presented upon request to the director or any peace officer
for examination.
(Ordinance 2137, 9-27-16)
(Ordinance 2137, 9-27-16)
A certificate of registration for a credit access business is
not transferable.
(Ordinance 2137, 9-27-16)
A.
A credit
access business shall maintain a complete set of records of all extensions
of consumer credit arranged or obtained by the credit access business,
which must include the following information:
(1)
The
name and address of the consumer.
(2)
The
principal amount of cash actually advanced.
(3)
The
length of the extension of consumer credit, including the number of
installments and renewals.
(4)
The
fees charged by the credit access business to arrange or obtain an
extension of consumer credit.
B.
A credit
access business shall maintain a copy of each written agreement between
the credit access business and a consumer evidencing an extension
of a consumer credit (including, but not limited to, any refinancing
or renewal granted to the consumer).
C.
A credit
access business shall maintain copies of all quarterly reports filed
with the Texas Consumer Credit Commissioner under section 393.627
of the Texas Finance Code.
D.
The records
required to be maintained by a credit access business under this section
must be retained for at least three years.
E.
The records
required to be maintained by a credit access business under this section
must be made immediately available for inspection by the director
or a peace officer upon request during the usual and customary business
hours of the credit access business.
(Ordinance 2137, 9-27-16)
A.
The cash
advanced under an extension of consumer credit that a credit access
business obtains for a consumer or assists a consumer in obtaining
in the form of a deferred presentment transaction may not exceed twenty
percent (20%) of the consumer’s gross monthly income.
B.
The cash
advanced under an extension of consumer credit that a credit access
business obtains for a consumer or assists a consumer in obtaining
in the form of a motor vehicle title loan may not exceed the lesser
of:
C.
A credit
access business shall use a paycheck or other documentation establishing
income to determine a consumer’s income.
D.
An extension
of consumer credit that a credit access business obtains for a consumer
or assists a consumer in obtaining and that provides for repayment
in installments may not be payable in more than four installments.
Proceeds from each installment must be used to repay at least twenty-five
percent (25%) of the principal amount of the extension of consumer
credit. An extension of consumer credit that provides for repayment
in installments many not be refinanced or renewed.
E.
An extension
of consumer credit that a credit access business obtains for a consumer
or assists a consumer in obtaining and that provides for a single
lump sum repayment may not be refinanced or renewed more than three
(3) times. Proceeds from each refinancing or renewal must be used
to repay at least twenty-five percent (25%) of the principal amount
of the original extension of consumer credit.
F.
For purposes
of this section, an extension of consumer credit that is made to a
consumer within seven (7) days after a previous extension of consumer
credit has been paid by the consumer will constitute a refinancing
or renewal.
(Ordinance 2137, 9-27-16)
A.
Every
agreement between the credit access business and a consumer evidencing
an extension of consumer credit (including, but not limited to, any
refinancing or renewal granted to the consumer), must be written in
the consumer’s language of preference. Every credit access business
location must maintain on its premises, to be available for use by
consumers, agreements in the English and Spanish languages.
B.
For every
consumer who cannot read, every agreement between the credit access
business and a consumer evidencing an extension of consumer credit
(including, but not limited to, any refinancing or renewal granted
to the consumer) must be read to the consumer in its entirety in the
consumer’s language of preference, prior to the consumer’s
signature.
C.
For every
consumer who cannot read, every disclosure and notice required by
law must be read to the consumers in its entirety in the consumer’s
language of preference, prior to the consumer’s signature.
(Ordinance 2137, 9-27-16)
A credit access business shall provide a form, to be prescribed
by the director, to each consumer seeking assistance in obtaining
an extension of consumer credit which references nonprofit agencies
that provide financial education and training programs and agencies
with cash assistance programs. The form will also contain information
regarding extensions of consumer credit, and must include the information
required by Section 18-170.A(1)–(5) of this article specific
to the loan agreement with the consumer. If the director has prescribed
a form in the consumer’s language of preference, the form must
be provided in the consumer’s language of preference.
(Ordinance 2137, 9-27-16)
