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Summary: Currently, regulated lenders can impose nonrefundable flat charges in addition to interest charges based on a loan’s amount and duration. This flat charge is called an administrative fee for non-real property loans and as an acquisition charge for other loans. The administrative fee has not been increased in more than 10 years and the acquisition charge has not been increased in more than 20 years. HB 2315 would allow the Finance Commission of Texas to set the maximum amount of an administrative fee or acquisition charge by rule.
Analysis: HB 2315 would allow lenders more flexibility in setting fee rates by allowing the Finance Commission of Texas to raise the maximum fee rates. This would allow lenders to raise their rates, but it would also loosen regulation on their fees. By giving lenders more flexibility, HB 2315 limits the burden of government on these lenders. Vote “yes,” on HB 2315.