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Texas Finance Code - FIN § 398.005. Administration of Chapter;  Rulemaking

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) The Office of Consumer Credit Commissioner shall administer, implement, and enforce this chapter.

(b) Except as provided by Subsection (d), the Office of Consumer Credit Commissioner may:

(1) bring enforcement actions for:

(A) violations of rules adopted under Subsection (c);

(B) failures to make disclosures required by Section 398.051;  or

(C) failures to register as required by Section 398.053;

(2) terminate or suspend registrations;  and

(3) assess civil penalties.

(c) The Finance Commission of Texas shall adopt rules applicable to providers and commercial sales-based financing brokers that identify unlawful, unfair, deceptive, or abusive acts or practices related to a transaction subject to this chapter.  Rules adopted under this subsection must identify and prohibit specific acts or practices by providers or brokers that:

(1) the commission considers unfair because:

(A) the act or practice causes or is likely to cause substantial injury to a recipient that the recipient cannot reasonably avoid;  and

(B) the injury outweighs the benefits to recipients or to market competition;

(2) are material acts or practices that will or likely will mislead a recipient who, given the circumstances, has a reasonable interpretation of the act or practice;

(3) materially interfere with a recipient's ability to understand a term or condition of a commercial sales-based financing transaction;  or

(4) take unreasonable advantage of:

(A) a recipient's lack of understanding of the material risks, costs, or conditions of the commercial sales-based financing transaction;  or

(B) a recipient's inability to protect the recipient's interest in selecting or using a commercial sales-based financing product.

(d) The Finance Commission of Texas may not adopt a maximum annual percentage rate, finance charge, or fee for commercial sales-based financing transactions.

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Cite this article: FindLaw.com - Texas Finance Code - FIN § 398.005. Administration of Chapter;  Rulemaking - last updated January 01, 2024 | https://codes.findlaw.com/tx/finance-code/fin-sect-398-005/

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