Texas Finance Code Title 5, Chapter 393 - Credit Services Organizations

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 393.001 - Definitions
  In this chapter: (1) "Consumer" means an individual who is solicited to purchase or who purchases the services of a credit services organization. (2) "Consumer...
• Texas Section 393.002 - Persons Not Covered
  (a) This chapter does not apply to: (1) a person: (A) authorized to make a loan or grant an extension of consumer credit under the...

SUBCHAPTER B REGISTRATION AND DISCLOSURE STATEMENTS

• Texas Section 393.003 - Waiver Void
  A waiver of a provision of this chapter by a consumer is void. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
• Texas Section 393.101 - Registration Statement
  (a) Before conducting business in this state, a credit services organization shall register with the secretary of state by filing a statement that: (1) contains...
• Texas Section 393.102 - Update Of Registration Statement
  A credit services organization shall update information contained in the registration statement not later than the 90th day after the date on which the information...
• Texas Section 393.103 - Inspection Of Registration Statement
  A credit services organization shall allow a consumer to inspect the registration statement on request. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept....
• Texas Section 393.104 - Filing Fee
  The secretary of state may charge a credit services organization a reasonable fee to cover the cost of filing a registration statement or renewal application...
• Texas Section 393.105 - Disclosure Statement
  Before executing a contract with a consumer or receiving valuable consideration from a consumer, a credit services organization shall provide the consumer with a document...

SUBCHAPTER C CONTRACT FOR SERVICES

• Texas Section 393.106 - Copy Of Disclosure Statement
  A credit services organization shall keep in its files a copy of a document required under Section 393.105, signed by the consumer, acknowledging receipt, until...
• Texas Section 393.201 - Form And Terms Of Contract
  (a) Each contract for the purchase of the services of a credit services organization by a consumer must be in writing, dated, and signed by...
• Texas Section 393.202 - Notice Of Cancellation
  (a) The contract must conspicuously state the following, in type that is boldfaced, capitalized, underlined, or otherwise distinguished from the surrounding written material and in...
• Texas Section 393.203 - Issuance Of Contract And Other Documents
  A credit services organization shall give to the consumer, when the document is signed, a copy of the completed contract and any other document the...

SUBCHAPTER C-1 NOTICE AND DISCLOSURE REQUIREMENTS FOR CERTAIN CREDIT SERVICES ORGANIZATIONS

• Texas Section 393.204 - Breach Of Contract
  The breach by a credit services organization of a contract under this chapter, or of an obligation arising from a contract under this chapter, is...
• Texas Section 393.221 - Definitions
  In this subchapter: (1) "Credit access business" means a credit services organization that obtains for a consumer or assists a consumer in obtaining an extension...
• Texas Section 393.222 - Posting Of Fee Schedule; Notices
  (a) A credit access business shall post, in a conspicuous location in an area of the business accessible to consumers and on any Internet website,...
• Texas Section 393.223 - Consumer Transaction Information
  (a) Before performing services described by Section 393.221(1), a credit access business must provide to a consumer a disclosure adopted by rule of the Finance...

SUBCHAPTER D PROHIBITIONS AND RESTRICTIONS

• Texas Section 393.224 - Administrative Penalty
  The consumer credit commissioner, in accordance with rules adopted by the Finance Commission of Texas, may assess an administrative penalty against a credit access business...
• Texas Section 393.301 - Representative
  In this subchapter, a representative of a credit services organization includes: (1) a salesperson, agent, or other representative of the organization; and (2) an independent...
• Texas Section 393.302 - Charge Or Receipt Of Consideration Before Completion Of Services
  A credit services organization or a representative of the organization may charge or receive from a consumer valuable consideration before completely performing all the services...
• Texas Section 393.303 - Charge Or Receipt Of Consideration For Referral
  A credit services organization or a representative of the organization may not charge or receive from a consumer valuable consideration solely for referring the consumer...
• Texas Section 393.304 - False Or Misleading Representation Or Statement
  A credit services organization or a representative of the organization may not: (1) make or use a false or misleading representation in the offer or...
• Texas Section 393.305 - Fraudulent Or Deceptive Conduct
  A credit services organization or a representative of the organization may not directly or indirectly engage in a fraudulent or deceptive act, practice, or course...
• Texas Section 393.306 - Advertising Services Without Filing Registration Statement
  A credit services organization or a representative of the organization may not advertise the services of the organization if the organization has not filed a...

SUBCHAPTER E SURETY BOND; SURETY ACCOUNT

• Texas Section 393.307 - Causing Waiver Prohibited
  A credit services organization may not attempt to cause a consumer to waive a right under this chapter. Acts 1997, 75th Leg., ch. 1008, Sec....
• Texas Section 393.401 - Surety Bond
  (a) The surety bond of a credit services organization must be issued by a surety company authorized to do business in this state. (b) A...
• Texas Section 393.402 - Surety Account
  (a) The surety account of a credit services organization must be held in trust at a federally insured bank or savings association located in this...
• Texas Section 393.403 - Amount Of Surety Bond Or Account
  The surety bond or account of a credit services organization must be in the amount of $10,000. Acts 1997, 75th Leg., ch. 1008, Sec. 1,...
• Texas Section 393.404 - Beneficiary Of Surety Bond Or Account
  The surety bond or account of a credit services organization must be in favor of: (1) this state for the benefit of a person damaged...
• Texas Section 393.405 - Claim Against Surety Bond Or Account
  (a) A person making a claim against a surety bond or account of a credit services organization for a violation of this chapter may file...
• Texas Section 393.406 - Term Of Surety Bond Or Account
  The surety bond or account of a credit services organization must be maintained until the second anniversary of the date on which the organization ceases...

SUBCHAPTER F CRIMINAL PENALTIES AND CIVIL REMEDIES

• Texas Section 393.407 - Payment Of Money In Surety Account To Credit Services Organization
  (a) A depository may not pay money in a surety account to the credit services organization that established the account or a representative of the...
• Texas Section 393.501 - Criminal Penalty
  (a) A person commits an offense if the person violates this chapter. (b) An offense under this chapter is a Class B misdemeanor. Acts 1997,...
• Texas Section 393.502 - Injunctive Relief
  A district court on the application of the attorney general or a consumer may enjoin a violation of this chapter. Acts 1997, 75th Leg., ch....
• Texas Section 393.503 - Damages
  (a) A consumer injured by a violation of this chapter is entitled to recover: (1) actual damages in an amount not less than the amount...
• Texas Section 393.504 - Deceptive Trade Practice
  A violation of this chapter is a deceptive trade practice actionable under Subchapter E, Chapter 17, Business & Commerce Code. Acts 1997, 75th Leg., ch....

SUBCHAPTER G LICENSING AND REGULATION OF CERTAIN CREDIT SERVICES ORGANIZATIONS

• Texas Section 393.505 - Statute Of Limitations
  An action under Section 393.503 or 393.504 must be brought not later than the fourth anniversary of the date on which the contract to which...
• Texas Section 393.601 - Definitions
  In this subchapter: (1) "Commissioner" means the consumer credit commissioner. (2) "Credit access business" means a credit services organization that obtains for a consumer or...
• Texas Section 393.602 - Applicability
  (a) This subchapter applies only to a credit services organization that obtains for a consumer or assists a consumer in obtaining an extension of consumer...
• Texas Section 393.603 - License Required
  A credit services organization must obtain a license under this subchapter for each location at which the organization operates as a credit access business in...
• Texas Section 393.604 - Application For License
  (a) An application for a license under this subchapter must: (1) be under oath; (2) give the approximate location from which the business is to...
• Texas Section 393.605 - Bond
  (a) If the commissioner requires, an applicant for a license under this subchapter shall file with the application a bond that is: (1) in an...
• Texas Section 393.606 - Investigation Of Application
  On the filing of an application and a bond, if required under Section 393.605, and on payment of the required fees, the commissioner shall conduct...
• Texas Section 393.607 - Approval Or Denial Of Application
  (a) The commissioner shall approve the application and issue to the applicant a license to operate as a credit access business for purposes of engaging...
• Texas Section 393.608 - Disposition Of Fees On Denial Of Application
  If the commissioner denies the application, the commissioner shall retain the investigation fee and shall return to the applicant the license fee submitted with the...
• Texas Section 393.609 - Name And Place Of License
  (a) A license issued under this subchapter must state: (1) the name of the license holder; and (2) the address of the office from which...
• Texas Section 393.610 - License Display
  A license holder shall display a license at the place of business provided on the license. With respect to business conducted through the Internet, this...
• Texas Section 393.611 - Minimum Assets For License
  A license holder shall maintain net assets used or readily available for use in conducting the business of each of the offices for which a...
• Texas Section 393.612 - Annual License Fee
  Not later than December 1, a license holder shall pay to the commissioner for each license held an annual fee for the year beginning the...
• Texas Section 393.613 - Expiration Of License On Failure To Pay Annual Fee
  If the annual fee for a license is not paid before the 16th day after the date on which the written notice of delinquency of...
• Texas Section 393.614 - License Suspension Or Revocation
  (a) After notice and a hearing the commissioner may suspend or revoke a license if the commissioner finds that: (1) the license holder failed to...
• Texas Section 393.615 - License Suspension Or Revocation Filed With Public Records
  The decision of the commissioner on the suspension or revocation of a license and the evidence considered by the commissioner in making the decision shall...
• Texas Section 393.616 - Reinstatement Of Suspended License; Issuance Of New License After Revocation
  The commissioner may reinstate a suspended license or issue a new license on application to a person whose license has been revoked if at the...
• Texas Section 393.617 - Surrender Of License
  A license holder may surrender a license issued under this subchapter by delivering to the commissioner: (1) the license; and (2) a written notice of...
• Texas Section 393.618 - Effect Of License Suspension, Revocation, Or Surrender
  (a) The suspension, revocation, or surrender of a license issued under this subchapter does not affect the obligation of a contract between the license holder...
• Texas Section 393.619 - Moving An Office
  (a) A license holder shall give written notice to the commissioner before the 30th day before the date the license holder moves an office from...
• Texas Section 393.620 - Transfer Or Assignment Of License
  A license may be transferred or assigned only with the approval of the commissioner. Added by Acts 2011, 82nd Leg., R.S., Ch. 1302 (H.B. 2594),...
• Texas Section 393.621 - Administration
  The office shall administer this subchapter. Added by Acts 2011, 82nd Leg., R.S., Ch. 1302 (H.B. 2594), Sec. 2, eff. January 1, 2012.
• Texas Section 393.622 - Rules
  (a) The finance commission may: (1) adopt rules necessary to enforce and administer this subchapter; (2) adopt rules with respect to the quarterly reporting by...
• Texas Section 393.623 - Providing Or Advertising Services Without License Prohibited
  A credit access business or a representative of the business may not provide or advertise the services of the business if the business is not...
• Texas Section 393.624 - Restrictions On Off-site Advertising
  (a) A credit access business may not advertise on the premises of a nursing facility, assisted living facility, group home, intermediate care facility for persons...
• Texas Section 393.625 - Military Borrowers
  An extension of consumer credit described by Section 393.602(a) that is obtained by a credit access business for a member of the United States military...
• Texas Section 393.626 - Debt Collection Practices
  A violation of Chapter 392 by a credit access business with respect to an extension of consumer credit described by Section 393.602(a) constitutes a violation...
• Texas Section 393.627 - Quarterly Report To Commissioner
  A credit access business shall file a quarterly report with the commissioner on a form prescribed by the commissioner that provides the following information relating...
• Texas Section 393.628 - Texas Financial Education Endowment
  (a) As part of the licensing fee and procedures described under this subchapter, each credit access business or license holder shall pay to the commissioner...

Last modified: September 28, 2016