SB 1650

84(R) - 2015
Senate Business & Commerce
Senate Business & Commerce
Business, Industry, & Commerce

Vote Recommendation

  • Negative
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Kevin Eltife

Bill Caption

Relating to credit services organizations and extensions of consumer credit, including extensions of consumer credit facilitated by credit services organizations.

Fiscal Notes

No fiscal implication to the State is anticipated.

Bill Analysis

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.

A new section would allow the Consumer Credit Commissioner (Commissioner) to examine each CSO’s place of business. The Commissioner would be allowed to inspect all transactions and records of the CSO. Additionally, during this investigation, the Commissioner would be allowed to examine a person under oath on a subject pertinent to the investigation. 

Vote Recommendation Notes

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.

Organizations Supporting

City of Corpus Christi
Texas Impact

Organizations Opposed

Christian Life Commission
Texas Catholic Conference of Bishops