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.
has the meaning given that term in section 393.601 of the
Texas Finance Code.
means the director of the department of Building Inspection
or such other person designated by the city manger to enforce the
provisions of this article.
has the meaning given that term in section 393.001 of the
Texas Finance Code.
has the meaning given that term in section 393.601 of the
Texas Finance Code.
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.
(Ordinance 6682, sec. 1, adopted 3/18/14)
(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 in accordance with the provisions of section 10.05 of this Code.
(C)
A culpable
mental state is not required for the commission of an offense under
this article and need not be proved.
(Ordinance 6682, sec. 1, adopted 3/18/14)
It is a 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 6682, sec. 1, adopted 3/18/14)
A person commits an offense if the person acts, operates, or
conducts business as a credit access business without a valid certificate
of registration. A certificate of registration is required for each
physically separate credit access business located in the City.
(Ordinance 6682, sec. 1, adopted 3/18/14)
(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, and
telephone number of the applicant.
(2)
The business or trade name, street address, mailing address, facsimile
number, and telephone number of the credit access business.
(3)
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.
(B)
An
applicant or registrant shall notify the director within 45 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 and any change in the status of the state license
held by the applicant or registrant. A change of status includes a
denial of issuance, a suspension, revocation, surrender, expiration
without renewal, or other termination of the registrant’s state
license.
(Ordinance 6682, sec. 1, adopted 3/18/14; Ordinance
7363 adopted 9/6/2022)
(A)
The director shall issue to the applicant a certificate of registration upon receiving a completed application under section 26.185.
(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 6682, sec. 1, adopted 3/18/14)
(Ordinance 6682, sec. 1, adopted 3/18/14)
A certificate of registration for a credit access business is
not transferable.
(Ordinance 6682, sec. 1, adopted 3/18/14)
(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
at, by or through the location for which a certificate of registration
has been issued, 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; and
(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)
The
records required to be maintained by a credit access business under
this section must be retained for at least three years and made available
for inspection by the City at the registered location upon request
during the usual and customary business hours of the credit access
business.
(Ordinance 6682, sec. 1, adopted 3/18/14)
(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 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:
(1)
Three percent of the consumer’s gross annual income; or
(2)
Seventy percent of the retail value of the motor vehicle. On and
after the effective date of this article, 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 only be made on a non-recourse basis.
(C)
A credit
access business shall use a recent paycheck or other reliable 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 inclusive of fees and interest. Proceeds from each installment
must be used to repay at least twenty-five percent of the principal
amount of the extension of consumer credit. An extension of consumer
credit that provides for repayment in installments may 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 times. Proceeds from each refinancing or renewal must be
used to repay at least twenty-five percent 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 days after a previous extension of
consumer credit has been paid by the consumer constitutes a refinancing
or renewal.
(Ordinance 6682, sec. 1, adopted 3/18/14)
(A)
Every
agreement between the credit access business and a consumer that evidences
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, an agreement between the credit access
business and a consumer that evidences 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 on
any loan application or agreement.
(Ordinance 6682, sec. 1, adopted 3/18/14)
