(a) A credit services organization or credit access business shall not obtain for a consumer, or assist a consumer in obtaining, a cash advance under an extension of consumer credit transaction that exceeds 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 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, and 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.
(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 the 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 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 that is made to a consumer within seven days after a previous extension of consumer credit transaction has been paid by the consumer constitutes a refinancing or renewal. (Ord. Nos. 28287; 31747)