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Texas Finance Code - Section 394.204. Registration

Legal Research Home > Texas Laws > Finance Code > Texas Finance Code - Section 394.204. Registration

§ 394.204. REGISTRATION.  (a) A person, regardless of 
whether located in this state, may not provide a debt management 
service to a consumer in this state unless the person is registered 
with the commissioner.
	(b)  Registration expires on December 31 of the year in which 
the registration occurs and must be renewed annually.
	(c)  An application for an initial registration must be in a 
form prescribed by the commissioner and accompanied by:
		(1)  the appropriate fees set by the finance commission 
in an amount necessary to recover the costs of administering this 
subchapter;
		(2)  the surety bond or insurance required by Section 
394.206;              
		(3)  a detailed description of the ownership interest 
of each officer, director, agent, or employee of the applicant, and 
any member of the immediate family of an officer, director, agent, 
or employee of the applicant, in a for-profit affiliate or 
subsidiary of the applicant or in any other for-profit business 
entity that provides services to the applicant or to a consumer in 
relation to the applicant's debt management business;  and
		(4)  any other information that the commissioner 
requires.                  
	(d)  An officer or employee of a person registered under this 
subchapter is not required to be separately registered.
	(e)  Unless the commissioner notifies an applicant that a 
longer period is necessary, the commissioner shall approve or deny 
an initial registration not later than the 60th day after the date 
on which the completed application, including all required 
documents and payments, is filed.  The commissioner shall inform 
the applicant in writing of the reason for denial.
	(f)  A person may renew a registration by paying the 
appropriate fee and completing all required documents.
	(g)  The finance commission by rule may establish procedures 
to facilitate the registration and collection of fees under this 
section, including rules staggering throughout the year the dates 
on which fees are due.
	(h)  The commissioner may refuse an initial application if 
the application contains errors or incomplete information.  An 
application is incomplete if it does not include all of the 
information required by this section and Section 394.205.
	(i)  The commissioner may deny an initial application if:                      
		(1)  the applicant or any principal of the applicant 
has been convicted of a crime or found civilly liable for an offense 
involving moral turpitude, including forgery, embezzlement, 
obtaining money under false pretenses, larceny, extortion, 
conspiracy to defraud, or any other similar offense or violation;
		(2)  the registration of the applicant or any principal 
of the applicant has been revoked or suspended in this state or 
another state, unless the applicant provides information that the 
commissioner finds sufficient to show that the grounds for the 
previous revocation or suspension no longer exist and any problem 
cited in the previous revocation has been corrected;  or
		(3)  the commissioner, based on specific evidence, 
finds that the applicant does not warrant the belief that the 
business will be operated lawfully and fairly and within the 
provisions and purposes of this subchapter.
	(j)  On written request, the applicant is entitled to a 
hearing, pursuant to Chapter 2001, Government Code, on the question 
of the applicant's qualifications for initial registration if the 
commissioner has notified the applicant in writing that the initial 
application has been denied.  A request for a hearing may not be 
made after the 30th day after the date the commissioner mails a 
notice to the applicant stating that the application has been 
denied and stating the reasons for the denial.
	(k)  In addition to the power to refuse an initial 
application as specified in this section, the commissioner may 
suspend or revoke a provider's registration after notice and 
hearing if the commissioner finds that any of the following 
conditions are met:
		(1)  a fact or condition exists that if it had existed 
when the provider applied for registration would have been grounds 
for denying registration;
		(2)  a fact or condition exists that the commissioner 
was not aware of when the provider applied for registration and 
would have been grounds for denying registration;
		(3)  the provider violates this subchapter or rule or 
order of the commissioner under this subchapter;
		(4)  the provider is insolvent;                                               
		(5)  the provider refuses to permit the commissioner to 
make an examination authorized by this subchapter;
		(6)  the provider fails to respond within a reasonable 
time and in an appropriate manner to communications from the 
commissioner;
		(7)  the provider has failed to disburse money to 
creditors on behalf of consumers within a reasonable time, normally 
30 days;
		(8)  the commissioner determines that the provider's 
trust account is not materially in balance with and reconciled to 
the consumer's account;  or
		(9)  the provider fails to warrant the belief that the 
business will be operated lawfully and fairly and within the 
provisions and purposes of this subchapter.
	(l)  The commissioner's order revoking a registration must 
include appropriate provisions to transfer existing clients of the 
provider to one or more registered providers to ensure the 
continued servicing of the clients' accounts.
	(m)  The commissioner shall maintain a list of registered 
providers and make the list available to interested persons and to 
the public.

Added by Acts 2005, 79th Leg., ch. 336, § 1, eff. Sept. 1, 2005.           

Last modified: August 11, 2007