Creditor Registration
-
List of the laws and administrative rules pertaining to creditor registration
- Creditor Registration Booklet: This booklet contains a list of frequently asked questions, a registration form, and a list of laws and rules in a printer-friendly PDF file.
Introduction to Creditor Registration
Some retailers act as creditors, financing the sales of their goods and services by allowing their customers to make payments over time. These creditors may include boat and manufactured home dealers, furniture and carpet retailers, home improvement and air conditioner sales and service companies, some medical offices, etc.
Texas law requires these creditors—individuals or companies that originate, service, or collect on retail installment agreements—to register their businesses with the Office of Consumer Credit Commissioner (OCCC). Creditor registration became mandatory in September 1987. The requirement extends to retailers that provide financing through third-party lenders as well as retailers that fund the financing themselves. Retailers that accept only full payment on the spot (including checks and third-party credit cards like Visa and Mastercard) in exchange for their goods and services do not need to register with the OCCC.
Benefits to your business
Registration is a simple, inexpensive process that can benefit your company in two key ways. First, your company is alerted to changes in the laws governing their credit practices by the OCCC, using the contact information on file. Also, the OCCC provides information on and clarification of the pertinent laws and interest rates. Upon paying your registration and renewal fees, you receive a decal to display at your business, letting your customers know that you are properly registered with the state.
Renewals even simpler than registrations
The registration must be renewed each year by October 31. The fee is the same for renewal as for registration: $10 for creditors whose financing is governed by Chapter 345 of the Texas Finance Code (a category most retailers fall into) and $15 for manufactured home dealers, governed by Chapter 347 of the Texas Finance Code. Each September, the OCCC sends a packet to each registered creditor containing an invoice for the renewal fee and a pre-printed form containing all the registration information on file. If no information has changed, you simply return the form with the minimal fee. If your business has undergone changes in ownership, location, or other key information, you can use this form to let us know.
You can further benefit your business by renewing
on time each year. Failing to renew on time can result in a $250 late filing
fee, as can failing to register with the OCCC as soon as your business begins
to offer financing. If you are paying the late filing fee for not registering
before you began acting as a creditor, you will also need to get caught up
by paying the renewal fee for each year your business has provided financing
without being registered.
 |
