Texas HB476 sets maximum interest rates for deferred presentment transactions and creates a criminal offense for violations.

Texas HB476 amends the Finance Code to establish maximum interest rates for deferred presentment transactions. For transactions advancing more than $300, the maximum annual percentage rate is set at 38.5 percent, and for transactions advancing $300 or less, it is 36 percent. The bill also voids and makes unenforceable any deferred presentment transaction that violates these interest rate limits. Additionally, it creates a criminal offense for lenders who enter into such transactions in violation of the new provisions, classifying the offense as a Class A misdemeanor.

Texas HB476 sets maximum interest rates for deferred presentment transactions and creates a criminal offense for violations.

Texas HB476 amends the Finance Code to establish maximum interest rates for deferred presentment transactions. For transactions advancing more than $300, the maximum annual percentage rate is set at 38.5 percent, and for transactions advancing $300 or less, it is 36 percent. The bill also voids and makes unenforceable any deferred presentment transaction that violates these interest rate limits. Additionally, it creates a criminal offense for lenders who enter into such transactions in violation of the new provisions, classifying the offense as a Class A misdemeanor.