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Relating to increasing the maximum reference base amount for certain consumer loans.
No fiscal implication to the State is anticipated.
Current law regulates traditional installment lenders in a variety of ways, including by setting a reference base amount which helps serve as a benchmark to set the maximum loan amount. The current reference base amount is $200.
SB 1089 would increase the reference base amount to $300 for the purposes of calculating maximum loan amounts. This will impact the overall maximum amount traditional installment lenders can loan.
As SB 1089 does not pertain to the liberty principles, Texas Action is neutral on this bill.