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HB 1350

Relating to a restriction on total charges charged for extensions of consumer credit that a credit services organization obtains for a consumer or assists a consumer in obtaining.

89th Legislature (2025) Introduced by Chris Turner

Texas bill HB 1350 would limit fees credit services organizations can charge consumers for obtaining or assisting in credit extensions, targeting predatory lending intermediaries.

Referred to Pensions, Investments & Financial Services
#creditserviceorganizations(s0165) #financial--general(i0365)
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Bill Summary · HB 1350

Legislative bill overview

HB 1350 proposes to cap the total charges that credit services organizations can impose when obtaining or assisting consumers in obtaining credit extensions. The bill targets predatory lending practices by limiting fees that intermediaries charge consumers for credit services. This legislation would apply to Texas-based credit services organizations operating under existing consumer protection frameworks.

Why is this important

Credit services organizations often charge substantial fees to connect consumers with lenders, sometimes creating a hidden cost layer on top of already expensive credit products. Capping these charges could reduce the total cost burden for vulnerable consumers seeking credit, particularly those with limited access to traditional banking. The impact depends heavily on what cap amount is specified in the bill's final language, which affects whether it meaningfully restricts practices or becomes largely symbolic.

Potential points of contention

  • Definition ambiguity: The bill's effectiveness hinges on how "total charges" and "credit services organization" are precisely defined—vague language could allow loopholes or unintended consequences
  • Market impact: Capping fees may reduce the availability of credit services to high-risk borrowers if organizations find the business model unprofitable, potentially pushing consumers toward unlicensed lenders
  • Enforcement challenges: Determining compliance requires monitoring numerous intermediaries and fee structures, raising questions about regulatory capacity and whether penalties are sufficient to deter violations

Compiled from official sources — confirm details with the bill’s official record.

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