MISCELLANEOUS REQUIREMENTS FOR CREDIT SERVICES ORGANIZATIONS AND CREDIT ACCESS BUSINESSES.

Austin City Code tit. 4, ch. 4-12, art. 3

in effect

Austin City Code § 4-12-20 MAINTENANCE OF RECORDS.

§ 4-12-20 - MAINTENANCE OF RECORDS. (A) A credit services organization and a credit access business shall maintain a complete set of records of all extensions of consumer credit transactions: (1) that the credit services organization or credit access business arranged or obtained for a consumer; and (2) on which the credit services organization or credit access business provided advice or assistance to a consumer. (B) A complete set of records must include the following information: (1) the name and address of the consumer; (2) the principal amount of cash actually advanced; (3) the fees charged to arrange or obtain an extension of consumer credit; (4) the fees charged to advise or assist a consumer in obtaining an extension of consumer credit; (5) the documentation used to establish a consumer's income under Section 4-12-22 (Restrictions on Extensions of Consumer Credit Transactions); (6) a copy of each written agreement, between the credit services organization or credit access business and a consumer, evidencing an extension of consumer credit including, but not limited to, any refinancing or renewal agreement with the consumer; (7) whether any part of the extension of consumer credit transaction has been refinanced or renewed and, if any part of the extension of consumer credit transaction has been refinanced or renewed, the number of refinances or renewals made; and (8) a copy of each written agreement between the lender and consumer. (C) A credit access business shall also maintain, and file with the director, copies, in a format prescribed by the director, of all annual reports, quarterly reports, and all revisions and updates to those reports filed with the Texas Consumer Credit Commissioner as required by Chapter 393, Texas Finance Code. The reports, revisions, and updates must be submitted to the City within five business days of being submitted to the Texas Consumer Credit Commissioner. (D) The records required to be maintained under this section: (1) must be retained for at least three years; and (2) to the extent not filed with the director, made available for inspection and copying by the City upon request during usual and customary business hours. Source: Ord. No. 20200521-028, Pt. 5, 6-1-20; Ord. No. 20200730-004, Pt. 5, 8-10-20.

Austin City Code § 4-12-21 CONSUMER RIGHT TO COPY OF AGREEMENT.

§ 4-12-21 - CONSUMER RIGHT TO COPY OF AGREEMENT. (A) A credit services organization and a credit access business shall give to the consumer, upon request, a printed copy of a signed contract, and any other document the credit services organization or credit access business requires a consumer to sign or acknowledge reading. (B) All contracts and other documents that a credit services organization or credit access business requires the consumer to sign or acknowledge reading shall be in the language in which the contract was negotiated and explained to the consumer. Source: Ord. No. 20200521-028, Pt. 5, 6-1-20; Ord. No. 20200730-004, Pt. 5, 8-10-20.

Austin City Code § 4-12-22 RESTRICTIONS ON EXTENSIONS OF CONSUMER CREDIT TRANSACTIONS.

§ 4-12-22 - RESTRICTIONS ON EXTENSIONS OF CONSUMER CREDIT TRANSACTIONS. (A) A credit services organization or credit access business shall not obtain for a consumer, or advise or assist a consumer in obtaining, a cash advance, under an extension of consumer credit transaction, that exceeds more than 20 percent of the consumer's gross monthly income. (B) A credit services organization or credit access business shall not obtain for a consumer, or advise or assist a consumer in obtaining, a cash advance in the form of a motor vehicle title loan that exceeds the lesser of: (1) three percent of the consumer's gross annual income; or (2) 70 percent of the retail value of the motor vehicle. (C) A credit services organization or credit access business shall use a paycheck, bank statement, IRS Form W-2 from the previous tax year, the previous year's tax return, a signed letter from an employer, or other similar documentation establishing income to determine a consumer's income. (D) A credit services organization or credit access business that obtains for a consumer or advises or assists a consumer in obtaining an extension of consumer credit shall by the terms of the extension of consumer credit transaction: (1) require payment of the total amount of the extension of consumer credit transaction, including any principal, interest, fees, valuable consideration, credit access business fees, and any other charges or costs, in four or fewer payments; and (2) reduce by at least 25 percent per payment the total amount of the extension of consumer credit transaction, including any principal, interest, fees, valuable consideration, credit access business fees, and any other charges or costs. (E) A credit services organization or credit access business shall not refinance or renew any part of an extension of consumer credit transaction, unless the total amount of the extension of consumer credit transaction, including any principal, interest, fees, valuable consideration, credit access business fees, and any other charges or costs, is due in a single payment. (F) A credit services organization or credit access business that refinances or renews an extension of consumer credit transaction under Subsection (E): (1) may not refinance or renew the extension of consumer credit transaction more than three times; and (2) the minimum payment amount due to refinance or renew such extension of consumer credit transaction must reduce by at least 25 percent the total amount of the extension of consumer credit transaction, including any principal, interest, fees, valuable consideration, credit access business fees, and any other charges or costs, such that the total amount owed by the consumer is paid in full after a maximum of three refinances or renewals. (G) For purposes of this section, an extension of consumer credit transaction that is made to a consumer within seven business days after a previous extension of consumer credit transaction has been paid by the consumer constitutes a refinancing or renewal. Source: Ord. No. 20200521-028, Pt. 5, 6-1-20; Ord. No. 20200730-004, Pt. 5, 8-10-20.

Austin City Code § 4-12-23 REFERRAL TO CONSUMER CREDIT COUNSELING.

§ 4-12-23 - REFERRAL TO CONSUMER CREDIT COUNSELING. (A) A credit services organization and a credit access business shall provide a list of non-profit agencies that provide financial education, training programs, or cash assistance programs to each consumer who seeks to obtain or seeks advice or assistance on obtaining an extension of consumer credit. The list must be on a form approved by the director and contain information regarding extensions of consumer credit. (B) A credit services organization and a credit access business must conspicuously display a poster, or other similar document, that contains information regarding extensions of consumer credit, as prescribed by the director. The organization or business must display the poster or similar document so that it is clearly visible to each consumer who enters the facility. Source: Ord. No. 20200521-028, Pt. 5, 6-1-20; Ord. No. 20200730-004, Pt. 5, 8-10-20.

Austin City Code § 4-12-24 RESTRICTIONS ON NON-DEFERRED PRESENTMENT OR MOTOR VEHICLE TITLE LOAN EXTENSIONS OF CONSUMER CREDIT.

§ 4-12-24 - RESTRICTIONS ON NON-DEFERRED PRESENTMENT OR MOTOR VEHICLE TITLE LOAN EXTENSIONS OF CONSUMER CREDIT. (A) This section applies to an extension of consumer credit transaction that a credit services organization obtains or arranges for a consumer or provides advice or assistance to obtain and that is not a deferred presentment transaction or a motor vehicle title loan. (B) The sum of all valuable consideration, fees, or other charges owed by the consumer to the credit services organization may not exceed 0.1 percent per day of the outstanding balance of the extension of consumer credit. Source: Ord. No. 20200521-028, Pt. 5, 6-1-20; Ord. No. 20200730-004, Pt. 5, 8-10-20.

Austin City Code § 4-12-25 COMPLIANCE REQUIRED.

§ 4-12-25 - COMPLIANCE REQUIRED. A person may not knowingly use a device, subterfuge, or pretense to evade the application of this chapter. Source: Ord. No. 20200521-028, Pt. 5, 6-1-20; Ord. No. 20200730-004, Pt. 5, 8-10-20.

Austin City Code § 4-12-26 OFFENSE AND PENALTY.

§ 4-12-26 - OFFENSE AND PENALTY. (A) A person who violates any section of this chapter commits a Class C misdemeanor punishable by a fine not to exceed $500. (B) Except as provided in Subsection (C), each day that a violation occurs is a separate offense. (C) Each extension of consumer credit transaction is a separate offense if the extension of consumer credit transaction violates: (1) Section 4-12-22 (Restrictions on Extensions of Consumer Credit Transactions); or (2) Section 4-12-24 (Restrictions on Non-Deferred Presentment or Motor Vehicle Title Loan Extensions of Consumer Credit). (D) The penalties provided for in Subsection (A) are in addition to any other remedies available under City ordinance or state law. (E) Except for an offense under Section 4-12-25 (Compliance Required), a culpable mental state is not required for a violation of this chapter and need not be proved. Source: Ord. No. 20200521-028, Pt. 5, 6-1-20; Ord. No. 20200730-004, Pt. 5, 8-10-20.

Source: City of Austin, City Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/austin/codes/code_of_ordinances?nodeId=TIT4BUREPERE_CH4-12RECRSEORCRACBU_ART3MIRECRSEORCRACBUFetched: 10/27/2026