2025 Texas Statutes
Finance Code
Title 5 - Protection of Consumers of Financial Services
Chapter 398 - Commercial Sales-Based Financing
Subchapter A. General Provisions
Section 398.005. Administration of Chapter; Rulemaking
Sec. 398.005. ADMINISTRATION OF CHAPTER; RULEMAKING. (a) The Office of Consumer Credit Commissioner shall administer, implement, and enforce this chapter.
(b) Except as provided by Subsection (d), the Office of Consumer Credit Commissioner may:
(1) bring enforcement actions for:
(A) violations of rules adopted under Subsection (c);
(B) failures to make disclosures required by Section 398.051; or
(C) failures to register as required by Section 398.053;
(2) terminate or suspend registrations; and
(3) assess civil penalties.
(c) The Finance Commission of Texas shall adopt rules applicable to providers and commercial sales-based financing brokers that identify unlawful, unfair, deceptive, or abusive acts or practices related to a transaction subject to this chapter. Rules adopted under this subsection must identify and prohibit specific acts or practices by providers or brokers that:
(1) the commission considers unfair because:
(A) the act or practice causes or is likely to cause substantial injury to a recipient that the recipient cannot reasonably avoid; and
(B) the injury outweighs the benefits to recipients or to market competition;
(2) are material acts or practices that will or likely will mislead a recipient who, given the circumstances, has a reasonable interpretation of the act or practice;
(3) materially interfere with a recipient's ability to understand a term or condition of a commercial sales-based financing transaction; or
(4) take unreasonable advantage of:
(A) a recipient's lack of understanding of the material risks, costs, or conditions of the commercial sales-based financing transaction; or
(B) a recipient's inability to protect the recipient's interest in selecting or using a commercial sales-based financing product.
(d) The Finance Commission of Texas may not adopt a maximum annual percentage rate, finance charge, or fee for commercial sales-based financing transactions.
Added by Acts 2025, 89th Leg., R.S., Ch. 723 (H.B. 700), Sec. 1, eff. September 1, 2025.
