89R2482 MLH-D     By: Bucy H.B. No. 476       A BILL TO BE ENTITLED   AN ACT   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.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter M, Chapter 342, Finance Code, is   amended by adding Section 342.606 to read as follows:          Sec. 342.606.  MAXIMUM INTEREST RATES. (a)  Unless a lower   rate of interest is otherwise provided by law, the maximum rate or   amount of interest that may be contracted for, charged, or received   from a borrower is:                (1)  for a deferred presentment transaction that   advances more than $300, 38.5 percent a year; and                (2)  for a deferred presentment transaction that   advances not more than $300, 36 percent a year.          (b)  A deferred presentment transaction entered into in   violation of this section is void and unenforceable.          (c)  A lender commits an offense if the lender enters into a   deferred presentment transaction in violation of this section.  An   offense under this section is a Class A misdemeanor.          SECTION 2.  Subchapter G, Chapter 393, Finance Code, is   amended by adding Section 393.629 to read as follows:          Sec. 393.629.  RESTRICTION ON CHARGES CHARGED IN CONNECTION   WITH DEFERRED PRESENTMENT TRANSACTIONS.  (a)  For purposes of this   section, the annual percentage rate of an extension of consumer   credit in the form of a deferred presentment transaction is   calculated including the total charges charged to the consumer in   connection with the extension of consumer credit, including   interest, lender charges, and any fees or any other valuable   consideration received by the credit access business or a   representative of the credit access business.          (b)  The annual percentage rate of an extension of consumer   credit in the form of a deferred presentment transaction that a   credit access business obtains for a consumer or assists a consumer   in obtaining may not exceed:                (1)  for a deferred presentment transaction that   advances more than $300, 38.5 percent; and                (2)  for a deferred presentment transaction that   advances not more than $300, 36 percent.          (c)  A deferred presentment transaction entered into in   violation of this section is void and unenforceable.          SECTION 3.  Sections 342.606 and 393.629, Finance Code, as   added by this Act, apply only to a loan or extension of consumer   credit, as applicable, made on or after the effective date of this   Act. A loan or extension of consumer credit made before the   effective date of this Act is governed by the law in effect on the   date the loan or extension of consumer credit was made, and the   former law is continued in effect for that purpose. For purposes of   this section, a refinance of a loan or extension of consumer credit   is considered made on the date the loan or extension of consumer   credit being refinanced was made.          SECTION 4.  This Act takes effect September 1, 2025.