Category: Texas

09
Mar

Texas CAB’s, CSO’s and 3rd Party Lender FAQ’s

Texas CAB – Texas CSO- Texas 3rd Party Lender

Texas Credit Access Businesses obtain credit for a consumer from an independent third-party lender in the form of a deferred presentment transaction or a motor vehicle title loan, more commonly referred to as “payday loans” or “title loans.”

In Texas, the actual third-party lender is not licensed, rather the credit access business that serves as the broker is the licensee in this regulated industry. The credit access business charges a fee to the consumer for obtaining the third-party loan; this fee is usually calculated as a percentage of the loan amount.

Third-party lenders typically earn an initial 10% interest and often participate in consumer NSF and late fees; 12% – 14% APR’s are not uncommon.

The borrower will sign a promissory note with the lender for the actual loan and a separate credit service agreement with the credit access business. Generally, all documents are signed at the credit access business location and payments are made directly to the credit access business.

For more Texas CAB – CSO – Third Party Lender informaion: Texas CAB

Share
28
Dec

Texas OCCC Payday Loan License Expires?

Texas OCCC Regulated Lender Licenses Expire at Midnight on 12/31/16.

tx-occc-logoFor those of us offering loans in Texas, here is a copy of the alert we received from the Texas OCCC:

Good afternoon,
This is a final reminder that regulated lender license renewal is now open online via ALECS and must be renewed by December 31st.
Licenses will expire at midnight on the 31st. The fee to reinstate a canceled license is an additional $1000.

To renew the license online , you can follow the steps below:
1. Log in to ALECS and from the left hand menu click on “Manage My Business.”
2. Under the License heading, click “Renew License” then from the drop down menu at the top, select Regulated Lender.
3. Select the licenses you would like to renew by checking the box next to the license number, or click the box under “Select All” to choose all licenses.
4. Check the box at the bottom of the page to confirm renewal, then click “License Renewal”
5. Select payment type, enter payment information and follow the prompts.
The fee to renew an ACTIVE license if $510. The fee to renew an INACTIVE license is $250. Volume fees are based on 2014 Annual Report data.
To verify that your license has been renewed you can go to your Dashboard and click the “My Recent Activity” tab.

After following these steps, if you continue to have questions or problems, feel free to call us at 512-936-7605.
PLEASE HAVE YOUR MASTER FILE OR LICENSE NUMBER AVAILABLE.
Licenses expire at midnight on December 31st.
Thank you and have a good day!
Licensing Department
Office of the Consumer Credit Commissioner
512-936-7605
https://alecs.occc.texas.gov
www.occc.texas.gov

Share
Share
Share