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Relating to credit
services organizations and extensions of consumer credit, including extensions
of consumer credit facilitated by credit services organizations.
No fiscal implication to the State is anticipated.
SB 1650 would make several clarifying changes to Chapter 393
(Credit Services Organizations) of the Finance Code. Specifically, this
legislation would offer definitions of certain words or terms. A new section
would prohibit a credit services organization (CSO) from assisting a consumer
in obtaining an extension of consumer credit if it is associated with a lender.
This bill would define the circumstances in which fees
charged by a CSO may or may not be assessed on a consumer.
While SB 1650 may make some minor clarifying changes to statute, its primary aim is to add regulation to credit access businesses which largely serve those of limited financial means with little other access to credit. This bill, by adding these regulations, would violate our free market and limited government principles. By further limiting credit options available to low income citizens, this bill would also infringe on individual liberty. We oppose SB 1650.