| (a) As an alternative to the maximum acquisition charge
specified in Texas Finance Code, §342.252(a) and §342.259(a)(1),
an authorized lender may collect an acquisition charge that does not
exceed the lesser of:
(1) 12.5% of the cash advance of the loan; or
(2) the maximum acquisition charge computed under subsection
(b) of this section.
(b) Computation of maximum acquisition charge.
(1) Definitions. In this subsection:
(A) "Consumer price index" means the Consumer Price
Index for Urban Wage Earners and Clerical Workers: U.S. City Average,
All Items, 1967=100, compiled by the Bureau of Labor Statistics, United
States Department of Labor, or, if that index is canceled or superseded,
the index chosen by the Bureau of Labor Statistics as most accurately
reflecting the changes in the purchasing power of the dollar for consumers.
(B) "Reference base index" means the consumer price
index for December 2023.
(2) Base amount. Effective until June 30, 2025, the
maximum acquisition charge is $125.
(3) Annual adjustment. Beginning in 2025, each year,
the amount of the maximum acquisition charge will be adjusted. The
adjustment will be effective from July 1 of the year of adjustment
to June 30 of the next year. The adjusted amount of the maximum acquisition
charge is the greater of $125 or the amount computed by:
(A) dividing the reference base index into the consumer
price index at the end of the preceding year;
(B) computing the percentage of change under subparagraph
(A) of this paragraph to the nearest whole percent;
(C) multiplying $125 by the result under subparagraph
(B) of this paragraph; and
(D) rounding the result computed under subparagraph
(C) of this paragraph to the next lower multiple of $5.00, unless
the result computed under subparagraph (C) of this paragraph is a
multiple of $5.00 in which event that result is used.
(4) Computation and publication. Beginning in 2025,
each year, the OCCC will compute the adjusted maximum acquisition
charge. No later than May 1, the OCCC will publish the amount of the
maximum acquisition charge in effect for the year of adjustment.
(c) Cash advance less than $30. Subsections (a) and
(b) of this section do not apply to a loan for which the cash advance
is less than $30.
(d) Limitation of one acquisition charge per month.
For a Texas Finance Code, Chapter 342, Subchapter F loan, an authorized
lender may not contract for, charge, or collect an acquisition charge
more than once during a month to the same borrower for that loan,
any refinancing of that loan, or any new loan made to the borrower
within the same month.
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| Source Note: The provisions of this §83.605 adopted to be effective November 9, 2006, 31 TexReg 8992; amended to be effective September 5, 2013, 38 TexReg 5704; amended to be effective July 11, 2024, 49 TexReg 4901 |
