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Credit Access Business (Payday and Car Title Lenders) - Details
Full Text: Ordinance No. 2013-1163 Chapter 28, Article XV
On December 18, 2013, Houston City Council amended Chapter 28 of the Code of Ordinances relating to Consumer Protection and Regulation of Credit Access Businesses to include credit access businesses – more commonly known as payday and motor vehicle title lenders.
Effective July 1, 2014, City of Houston requires Credit Access Businesses:
- Register annually
- To maintain a complete set of records of all consumer credit extensions issued or obtained by consumers.
- To maintain a written agreement between the credit access business and a consumer showing an extension of consumer credit including refinancing or renewal.
- To maintain copies of all quarterly reports filed under Texas Consumer Credit Commissioner.
- May not exceed 20 percent of consumer’s gross monthly income when issuing an extension of consumer credit in the form of deferred presentment.
- May not exceed the lesser of 3 percent of consumer’s gross annual income or 70 percent of the retail value of the motor vehicle when issuing an extension of consumer credit in the form of a motor vehicle title loan.
- Repayments in installments may not be payable in more than four installments and any extension of consumer credit that provides for repayment in installments may not be refinanced or renewed.
- Any extension of consumer credit for a single lump sum repayment may not be refinanced or renewed more than three times.
- Any extension of consumer credit made to a consumer within seven days after a previous extension of consumer credit has been paid by the consumer will constitute a refinancing or renewal.
- Every agreement between the CAB and consumer must be written in the consumer’s language of preference – English or Spanish.
- If consumer cannot read, every agreement, disclosure and notice required by law must be read to the consumer in its entirety in the consumer’s language of preference prior to their signature,
- To provide every consumer seeking assistance with a form referencing non-profit agencies that provide financial education and training programs and agencies with cash assistance programs.
- To provide the form described above in the consumer’s language of preference and will provide information on extensions of consumer credit and any information as required by the ordinance.
- To provide the form described above in the consumer’s language of preference and will provide information on extensions of consumer credit and any information as required by the ordinance.
Resources For Credit Access Business:
- Credit Access Business Notice of Registration and Renewal (Letter -- updated 04.26.2021)
- Registration and Renewal Checklist and Instructions (updated 04.26.2021)
- Credit Access Business Application (updated 06.03.2015)
- Credit Access Business Closure and Relocation Certificate of Registration Return Policy (04.30.2021)
- Credit Access Business Consumer Credit Information (English)
- Credit Access Business Consumer Credit Information (Spanish)
- Full text of the Ordinance: Chapter 28, Article XV, Code of Ordinances
How to Register with the City:
On Tuesday, March 18, 2014, the City of Houston began accepting credit access business registration applications as required under Chapter28, Article XV.
Effective Tuesday, July 1, 2014, all credit access businesses must have a city issued certificate of registration to lawfully operate within the City of Houston.
To obtain a certificate of registration, businesses must:
- Submit a completed Credit Access Business application form
- Submit a copy of current, valid current, valid Texas State License issued under Chapter 393, Subchapter G of Texas Finance Code provided by Texas Office of Consumer Credit Commissioner with documented proof of current license renewal
- Submit a copy of current, valid Certificate of Occupancy showing that the credit access business is in compliance with the City of Houston Construction Code
- Pay the appropriate fees (see schedule. pdf)
Completed applications and fees can be submitted:
In Person: |
By mail: |
Please call 832.394.8803 or email Houstonpermithelp@Houstontx.gov for more information or assistance.
Upon approval, the City will issue each business a certificate of registration. The certificate must be prominently displayed in each credit access business location in order to operate within the Houston city limits.
Resources For Credit Access Customers:
- Credit Access Business Consumer Credit Information (English)
- Credit Access Business Consumer Credit Information (Spanish)
- Full text of the Ordinance: Chapter 28, Article XV, Code of Ordinances
- Credit Access Business Complaint Form
How to file a Complaint about a Credit Access Business:
To file a complaint against a Credit Access Business located within the City of Houston, customers must submit completed complaint form along with copies of any related loan documents, fliers, disclosures, forms, etc. to ARA.
Completed forms and documents can be submitted:
In Person:
|
By mail: |
ARA will review the compliant form and documents to ensure completion before submitting to the City Attorney’s office for further investigation and prosecution (if applicable).
Questions to ask before you file:
- When was the payday loan/title loan taken out? As the City’s ordinance took effect July 1, 2014, complaints against loans received on or before June 30, 2021 cannot be prosecuted by the City’s legal department.
- Is the credit access business physically located within Houston city limits? The City of Houston’s ordinance does not apply to credit access businesses located outside city limits.
Please call 832.394.8803 or email Houstonpermithelp@Houstontx.gov for more information or assistance.