 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
||||||
 |
 |
 |
 |
 |
 |
 |
|
||||||||||||
 |
 |
 |
 |
 |
 |
|
|||||||||||||
 |
 |
 |
|
||||||||||||||||
FINANCE CODE
SUBCHAPTER A.
GENERAL PROVISIONS Sec.
393.001. DEFINITIONS. In this chapter: (1) "Consumer" means an
individual who is solicited to purchase or who purchases the services of a
credit services organization. (2) "Consumer reporting agency"
has the meaning assigned by Section 603(f), Fair Credit Reporting Act (15
U.S.C. Section 1681a(f)). (3) "Credit services
organization" means a person who provides, or represents that the person
can or will provide, for the payment of valuable consideration any of the
following services with respect to the extension of consumer credit by others: (A) improving a consumer's
credit history or rating; (B) obtaining an extension
of consumer credit for a consumer; or (C) providing advice or
assistance to a consumer with regard to Paragraph (A) or (B). (4) "Extension of consumer
credit" means the right to defer payment of debt offered or granted
primarily for personal, family, or household purposes or to incur the debt and
defer its payment. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.002. PERSONS NOT COVERED. (a) This chapter does not apply to: (1) a person: (A) authorized to make a
loan or grant an extension of consumer credit under the laws of this state or
the (B) subject to regulation and supervision
by this state or the (2) a lender approved by the United States
secretary of housing and urban development for participation in a mortgage
insurance program under the National Housing Act (12 U.S.C. Section 1701 et
seq.); (3) a bank or
savings association the deposits or accounts of which are eligible to be
insured by the Federal Deposit Insurance Corporation or a subsidiary of the
bank or association; (4) a credit union
doing business in this state; (5) a nonprofit
organization exempt from taxation under Section 501(c)(3), Internal Revenue
Code of 1986 (26 U.S.C. Section 501(c)(3)); (6) a real estate
broker or salesperson licensed under Chapter 1101, Occupations Code, who is
acting within the course and scope of that license; (7) an individual
licensed to practice law in this state who is acting within the course and
scope of the individual's practice as an attorney; (8) a broker-dealer
registered with the Securities and Exchange Commission or the Commodity Futures
Trading Commission acting within the course and scope of that regulation; (9) a consumer
reporting agency; (10) a person whose
primary business is making loans secured by liens on real property; (11) a mortgage broker or loan officer
licensed under Chapter 156, Finance Code, who is acting within the course and
scope of that license; or (12) an electronic
return originator who: (A) is an authorized
Internal Revenue Service e-file provider;
and (B) makes, negotiates,
arranges for, or transacts a loan that is based on a person's federal income
tax refund on behalf of a bank, savings bank, savings and loan association, or
credit union. (b) In an action under this chapter, a
person claiming an exemption under this section has the burden of proving the
exemption. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.003. WAIVER VOID. A waiver of a provision of this chapter
by a consumer is void. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. SUBCHAPTER B.
REGISTRATION AND DISCLOSURE STATEMENTS Sec.
393.101. REGISTRATION
STATEMENT. (a) Before conducting business in this
state, a credit services organization shall register with the secretary of
state by filing a statement that: (1) contains the name and
address of: (A) the
organization; and (B) each person who
directly or indirectly owns or controls at least 10 percent of the outstanding
shares of stock in the organization; and (2) fully discloses any
litigation or unresolved complaint relating to the operation of the
organization filed with a governmental authority of this state or contains a
notarized statement that there has been no litigation or unresolved complaint
of that type. (b) The organization shall keep a copy of
the registration statement in its files. (c) The secretary of state may not require
an organization to provide information other than information contained in the
registration statement. (d) A registration certificate expires on
the first anniversary of its date of issuance.
A registered credit services organization may renew a registration
certificate by filing a renewal application, in the form prescribed by the
secretary of state, and paying the renewal fee. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.102. UPDATE OF
REGISTRATION STATEMENT.
A
credit services organization shall update information contained in the
registration statement not later than the 90th day after the date on which the
information changes. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.103. INSPECTION OF
REGISTRATION STATEMENT.
A
credit services organization shall allow a consumer to inspect the registration
statement on request. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.104. FILING FEE. The secretary of state may charge a
credit services organization a reasonable fee to cover the cost of filing a
registration statement or renewal application in an amount not to exceed $100. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.105. DISCLOSURE
STATEMENT. Before
executing a contract with a consumer or receiving valuable consideration from a
consumer, a credit services organization shall provide the consumer with a
document containing: (1) a complete and
detailed description of the services to be performed by the organization for
the consumer and the total cost of those services; (2) an explanation
of the consumer's right to proceed against the surety bond or account obtained
under Section 393.302; (3) the name and
address of the surety company that issued the surety bond or the name and
address of the depository and the trustee and the account number of the surety
account, as appropriate; (4) a complete and accurate statement of
the consumer's right to review information on the consumer maintained in a file
by a consumer reporting agency, as provided by the Fair Credit Reporting Act
(15 U.S.C. Section 1681 et seq.); (5) a statement
that information in the consumer's file is available for review: (A) without charge on request made to the
consumer reporting agency not later than the 30th day after the date on which
the agency receives notice the consumer has been denied credit; and (B) for a minimal
charge at any other time; (6) a complete and accurate statement of
the consumer's right to dispute directly with a consumer reporting agency the
completeness or accuracy of an item contained in the consumer's file maintained
by the agency; (7) a statement
that accurate information cannot be permanently removed from the files of a
consumer reporting agency; (8) a complete and
accurate statement explaining: (A) when consumer
information becomes obsolete; and (B) that a consumer
reporting agency is prevented from issuing a report containing obsolete
information; and (9) a complete and
accurate statement of the availability of nonprofit credit counseling services. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.106. COPY OF
DISCLOSURE STATEMENT.
A
credit services organization shall keep in its files a copy of a document
required under Section 393.105, signed by the consumer, acknowledging receipt,
until the second anniversary of the date on which the organization provides the
document. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. SUBCHAPTER C.
CONTRACT FOR SERVICES Sec.
393.201. FORM AND TERMS
OF CONTRACT. (a) Each contract for the purchase of the
services of a credit services organization by a consumer must be in writing,
dated, and signed by the consumer. (b) In addition to the notice required by
Section 393.202, the contract must: (1) contain the payment
terms, including the total payments to be made by the consumer, whether to the
organization or to another person; (2) fully describe the
services the organization is to perform for the consumer, including each
guarantee and each promise of a full or partial refund and the estimated period
for performing the services, not to exceed 180 days; (3) contain the address
of the organization's principal place of business; and (4) contain the name and
address of the organization's agent in this state authorized to receive service
of process. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.202. NOTICE OF
CANCELLATION. (a) The contract must conspicuously state
the following, in type that is boldfaced, capitalized, underlined, or otherwise
distinguished from the surrounding written material and in immediate proximity
to the space reserved for the consumer's signature: "You, the buyer, may cancel this
contract at any time before (b) The contract must have attached two
easily detachable copies of a cancellation notice. The notice must be in boldfaced type and in
the following form: "Notice
of Cancellation You may cancel
this contract, without any penalty or obligation, within three days after the
date the contract is signed. If you cancel,
any payment made by you under this contract will be returned within 10 days
after the date of receipt by the seller of your cancellation notice. To cancel this
contract, mail or deliver a signed dated copy of this cancellation notice, or
other written notice, to: (name of
seller)
at (address of seller)(place of business) not later than I hereby cancel this transaction. (date) (purchaser's signature)" Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.203. ISSUANCE OF
CONTRACT AND OTHER DOCUMENTS. A credit services organization shall
give to the consumer, when the document is signed, a
copy of the completed contract and any other document the organization requires
the consumer to sign. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.204. BREACH OF
CONTRACT. The breach by
a credit services organization of a contract under this chapter, or of an
obligation arising from a contract under this chapter, is a violation of this
chapter. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. SUBCHAPTER D.
PROHIBITIONS AND RESTRICTIONS Sec.
393.301. REPRESENTATIVE. In this subchapter, a representative of
a credit services organization includes: (1) a salesperson,
agent, or other representative of the organization; and (2) an independent
contractor who sells or attempts to sell the services of the organization. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec. 393.302.
CHARGE
OR RECEIPT OF CONSIDERATION BEFORE COMPLETION OF SERVICES.
A credit services organization or a
representative of the organization may charge or receive from a consumer
valuable consideration before completely performing all the services the organization
has agreed to perform for the consumer only if the organization has obtained a
surety bond for each of its locations or established and maintained a surety
account for each of its locations in accordance with Subchapter E . Acts
1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.303. CHARGE OR
RECEIPT OF CONSIDERATION FOR REFERRAL. A credit services organization or a
representative of the organization may not charge or receive from a consumer
valuable consideration solely for referring the consumer to a retail seller who
will or may extend to the consumer credit that is substantially the same as
that available to the public. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.304. FALSE OR
MISLEADING REPRESENTATION OR STATEMENT. A credit services organization or a
representative of the organization may not: (1) make or use a
false or misleading representation in the offer or sale of the services of the
organization, including: (A) guaranteeing to
"erase bad credit" or words to that effect unless the representation
clearly discloses this can be done only if the credit history is inaccurate or
obsolete; and (B) guaranteeing an extension
of consumer credit regardless of the person's credit history unless the
representation clearly discloses the eligibility requirements for obtaining the
extension; or (2) make, or advise a consumer to make, a
statement relating to a consumer's credit worthiness, credit standing, or
credit capacity that the person knows, or should know by the exercise of
reasonable care, to be false or misleading to a: (A) consumer reporting
agency; or (B) person who has
extended consumer credit to a consumer or to whom a consumer is applying for an
extension of consumer credit. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.305. FRAUDULENT OR
DECEPTIVE CONDUCT.
A
credit services organization or a representative of the organization may not
directly or indirectly engage in a fraudulent or deceptive act, practice, or
course of business relating to the offer or sale of the services of the
organization. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.306. ADVERTISING
SERVICES WITHOUT FILING REGISTRATION STATEMENT. A credit services organization or a
representative of the organization may not advertise the services of the
organization if the organization has not filed a registration statement
required by Subchapter B. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.307. CAUSING WAIVER PROHIBITED. A credit services organization may not
attempt to cause a consumer to waive a right under this chapter. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. SUBCHAPTER E.
SURETY BOND; SURETY
ACCOUNT Sec.
393.401. SURETY BOND. (a) The surety bond of a credit services
organization must be issued by a surety company authorized to do business in
this state. (b) A copy of the bond shall be filed with
the secretary of state. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.402. SURETY
ACCOUNT. (a) The surety account of a credit services
organization must be held in trust at a federally insured bank or savings
association located in this state. (b) The name of the depository and the
trustee and the account number of the surety account must be filed with the
secretary of state. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.403. AMOUNT OF
SURETY BOND OR ACCOUNT.
The
surety bond or account of a credit services organization must be in the amount
of $10,000. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.404. BENEFICIARY OF
SURETY BOND OR ACCOUNT.
The
surety bond or account of a credit services organization must be in favor of: (1) this state for the
benefit of a person damaged by a violation of this chapter; and (2) a person
damaged by a violation of this chapter. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.405. CLAIM AGAINST SURETY BOND OR ACCOUNT. (a) A person making a claim against a
surety bond or account of a credit services organization for a violation of
this chapter may file suit against: (1) the
organization; and (2) the surety or
trustee. (b) A surety or trustee is liable only for
actual damages, reasonable attorney's fees, and court costs awarded under
Section 393.503(a). (c) The aggregate liability of a surety or
trustee for an organization's violation of this chapter may not exceed the
amount of the surety bond or account. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.406. TERM OF SURETY
BOND OR ACCOUNT. The surety
bond or account of a credit services organization must be maintained until the
second anniversary of the date on which the organization ceases operations. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.407. PAYMENT OF
MONEY IN SURETY ACCOUNT TO CREDIT SERVICES ORGANIZATION. (a) A depository may not pay money in a
surety account to the credit services organization that established the account
or a representative of the organization unless the organization or
representative presents a statement issued by the secretary of state indicating
that the requirement of Section 393.406 has been satisfied in relation to the
account. (b) The secretary of state may conduct an
investigation and require information to be submitted as necessary to enforce
this section. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. SUBCHAPTER F.
CRIMINAL PENALTIES AND CIVIL REMEDIES Sec.
393.501. CRIMINAL
PENALTY. (a) A person commits an offense if the
person violates this chapter. (b) An offense under this chapter is a
Class B misdemeanor. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.502. INJUNCTIVE
RELIEF. A district
court on the application of the attorney general or a consumer may enjoin a
violation of this chapter. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.503. DAMAGES. (a) A consumer injured by a violation of
this chapter is entitled to recover: (1) actual damages in an
amount not less than the amount the consumer paid the credit services
organization; (2) reasonable attorney's
fees; and (3) court costs. (b) A consumer who prevails in an action
under this section may also be awarded punitive damages. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.504. DECEPTIVE
TRADE PRACTICE. A violation of
this chapter is a deceptive trade practice actionable under Subchapter E,
Chapter 17, Business & Commerce Code. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sec.
393.505. STATUTE OF
LIMITATIONS. An action
under Section 393.503 or 393.504 must be brought not later than the fourth
anniversary of the date on which the contract to which the action relates is
executed. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Others who have viewed this page also viewed these pages:
RMCN Credit Services1611 Wilmeth Road, Suite BMcKinney TX 75069(972) 529-0900 Office (972) 562-0225 FaxToll Free (888) 4-MY-REPAIRSe Habla Español
|
|
|
Home |
Credentials |
Sample Results |
Testimonials |
References |
About Us |
Credit Scores |
Consumer Laws |
Valued Partners |
Location Credit Tools | Credit Problems | Credit Issues | Credit Industry Background | Understanding Consumer Credit | Privacy Statement | Site Map RMCNCareers.com |
©1997- RMCN Credit Services, Inc. All rights reserved. RMCN Credit Services, Inc does not provide tax, legal or financial advice. If you need any type of legal advice,
you must contact a licensed attorney. Comments about the possible and/or potential outcome of Client's matters are based upon experience and prior success in these matters.
RMCN does not guarantee the permanent removal of accurate and verifiable information. Client's active participation in providing RMCN all requested documents, forms,
and information including investigation results are essential for the accomplishment of an accurate credit report. Individual results may vary.
RMCN does business exclusively within the State of Texas. (Client) has initiated contact with RMCN for purposes of retaining its Texas-based services. RMCN's performance under its
(contract) will take place solely within the State of Texas. The parties agree that RMCN has not established contacts within, or availed itself of the laws of, any state other than Texas.