7 TAC §§1.901, 1.902, 1.911
The Finance Commission of Texas (the commission) proposes
new §§1.901, 1.902, and 1.911, concerning notice in written contracts;
annual registration fees by holders, creditors, and assignees; and interpretations
and advisory letters. The proposal is part of a rule review conducted in accordance
with HB 1, Article IX, Section 167. Simultaneously, the Finance Commission
is repealing the former rules and adopting these rules in their place. These
rules being repealed were reviewed and those being proposed to be adopted
here were evaluated and an assessment made that the reasons for (re)adopting
the rule continues to exist. The primary changes from the former rules are
organizational in nature or to appropriately identify the new statutory citations
of the Texas Finance Code.
Section 1.901 addresses the written notice required in retail installment
sales contracts. The required notice provides consumes with information on
how to contact the creditor or the regulator for information.
Section 1.902 prescribes the procedures for processing the annual registration
fees.
Section 1.911 identifies the appropriate terms and procedures for interpretations
approved by the Finance Commission and advisory opinions issued by the Office
of Consumer Credit Commissioner.
Leslie L. Pettijohn, Consumer Credit Commissioner has determined that for
the first five- year period these rules will be in effect, there will be no
fiscal implications for state or local government as a result of administering
or enforcing these rules.
Commissioner Pettijohn also has determined that for each year of the first
five-year period these rules will be in effect, the public benefit anticipated
as a result of the adoption of the new rules will be to more adequately inform
the public of the procedures pertaining to registration of creditors and the
process of obtaining interpretations and opinions.
Comments on the proposed adoption of the new sections may be submitted
in writing to Leslie L. Pettijohn, Consumer Credit Commissioner, 2601 North
Lamar Boulevard, Austin, Texas 78705-4207.
The new sections are proposed under Texas Finance Code, §11.304,
which authorizes the Finance Commission to adopt rules to enforce Title 4
of the Texas Finance Code.
Texas Finance Code, Chapters 345, 347, and 348 as well as the remainder
of Title 4 are affected by these proposed new sections.
§1.901.Consumer Notifications.
(a)
When a written contract or agreement is made under the
authority of Texas Finance Code, Chapter 345, 347, or 348, the contract must
contain as a separate section or otherwise conspicuously set out from the
surrounding written material, the following statement: "To contact (insert
authorized business name of retail seller, creditor, or holder as appropriate)
about this account call (insert telephone number of retail seller, creditor,
or holder as appropriate). This contract is subject in whole or in part to
Texas law which is enforced by the Consumer Credit Commissioner, 2601 N. Lamar
Blvd., Austin, Texas 78705-4207; (800) 538- 1579; (512) 936-7600, and can
be contacted relative to any inquiries or complaints."
(b)
The telephone number of the retail seller, creditor, or
holder may be printed in conjunction with the name and address of the retail
seller, creditor, or holder elsewhere on the contract or agreement provided
the notice in subsection (a) of this section is amended to direct the reader's
attention to the area of the contract where the telephone number may be found.
(c)
A retail seller as that term is defined in Chapter 345
or in Chapter 348 or a creditor as that term is defined in Chapter 347 may
continue to use the notice as previously required by this section without
modification for a period of one year following the effective date of this
rule.
§1.902.Annual Registration Fees.
(a)
An annual registration fee is required for each location
operated by a retail seller, creditor, holder or assignee.
(b)
An annual fee is required under the provisions of Texas
Finance Code §345.351, §347.451 or §348.401 and shall be payable
as follows:
(1)
a retail seller, creditor, holder, or assignee shall pay
a registration fee for every chapter under which business is conducted.
(2)
retail seller, holder, creditor, or assignee who begins
business under Texas Finance Code, Chapter 345, 347, or 348 shall pay the
annual fee within sixty days after the first day of commencing regulated operations.
(3)
The annual fee for each subsequent calendar year shall
be due and payable by October 31st of each year.
(4)
The registration is not transferable between locations.
Each new location must comply with the provisions in paragraph (2) of this
subsection.
(5)
No annual fee is required for a location operated
by a retail seller, creditor, holder, or assignee operating under the provisions
of Texas Finance Code, Chapter 345, 347, or 348 provided the personnel at
the location are not conducting regulated business with the consumer (e.g.
storage, web-hosting, or data processing facility).
(c)
Evidence of registration. The Office of Consumer Credit
Commissioner will issue a decal evidencing registration under the provisions
of Texas Finance Code, Chapter 345, 347, or 348 and this rule. This decal
shall be:
(1)
Affixed to door or window of the principal entrance; or
(2)
Displayed in a prominent location readily visible
to the consumer.
§1.911.Interpretations and Advisory Letters.
(a)
Definitions. The following words and terms, when used in
this section, shall have the following meanings, unless the context clearly
indicates otherwise.
(1)
Advisory letter--A letter by the commissioner or a member
of the staff of the Office of Consumer Credit Commissioner providing an informal
advisory response to an inquiry concerning provisions of the Texas Finance
Code, Title 4, Subtitles A or B and is not an interpretation as defined in
paragraph (3) of this subsection.
(2)
Commissioner--The commissioner of the Office of Consumer
Credit Commissioner.
(3)
Interpretation--A letter issued by the consumer credit
commissioner and approved by the Finance Commission of Texas pursuant to Texas
Civil Statutes, Texas Finance Code §14.108 interpreting a provision of
Title 4, Subtitle A or B in light of certain relevant facts by the requestor.
(b)
Procedures for Finance Commission of Texas interpretations.
Any person may submit a request for an interpretation. All requests must be
directed to the commissioner and contain the following items:
(1)
An explicitly statement that an interpretation approved
by the Finance Commission of Texas is desired.
(2)
A concise description of the contemplated transaction
or activity contemplated, the legal issue raised, and all facts necessary
to reach a conclusion in the matter.
(3)
A statement whether or not, to the best of the requester's
knowledge, the issue to be considered is an issue in pending litigation. Matters
in litigation will not ordinarily be answered.
(4)
A fee of $300 will be charged for an interpretation
to compensate the agency for the expense involved in researching and answering
the request. A payment of $300 should be submitted with the request. The commission
may determine and remit a partial refund if deemed applicable. The commission
may waive the fee.
(5)
Additional information. A requestor should also identify
each provision of law involved, and indicate the writer's opinion of how the
legal issues should be resolved, and the basis for that opinion, including
an analysis of any relevant court decisions, as well as, all prior interpretations
to which the request relates.
(6)
Processing time. Within ten business days of receipt
of a valid request pursuant to this subsection, the request will be filed
with the Texas Register for publication. Upon publication in the
Texas Register
, any party may within 30 calendar days submit briefs
or proposals pertaining to the request. The agency will draft an interpretation
or a response and present it to the Finance Commission of Texas for their
consideration. Within ten business days of an action of the Finance Commission
of Texas, a summary of the interpretation or the response will be filed with
the Texas Register for publication. Copies of interpretations or responses
shall contain a notation of approval and the date of action by the Finance
Commission of Texas.
(c)
Office of Consumer Credit Commissioner advisory letters.
Each advisory letter shall contain the following notation: "THIS ADVISORY
LETTER IS NOT AN INTERPRETATION APPROVED BY THE FINANCE COMMISSION OF TEXAS
PURSUANT TO TEXAS FINANCE CODE, §14.108. If an interpretation approved
by the Finance Commission of Texas is desired, then an interpretation should
be requested pursuant to the procedures set forth in 7 Texas Administrative
Code §1.911(b)".
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State, on
December 27, 1999.
TRD-9909044
Leslie L. Pettijohn
Commissioner
Finance Commission of Texas
Earliest possible date of adoption: February 6, 2000
For further information, please call: (512) 936-7640