Examination & Enforcement
Non-depository lenders who make
consumer loans fall under the Regulated Loan license of this agency are subject
to regular examinations by the agency's field examiners. Lenders may
take a security interest in personal or real property, and small loan lenders
may only require a signature of the borrower. Also, businesses who
make second lien mortgages are subject to the provisions of the Texas Finance
Code. Currently, the majority of loan companies in
The OCCC regulates and issues licenses for lenders of these types of loans (listed by relevant Texas Finance Code chapter):
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Chapter 342 Subchapter E (Secured consumer installment loans up to $12,500)
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Chapter 342 Subchapter F (Signature and payday loans up to $500)
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Chapter 342 Subchapter G (Secondary mortgage loans)
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Chapter 348 (Motor vehicle sales financing)
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Chapter 346 (Revolving credit accounts)
Businesses that conduct Chapter 345 (retail installment sales) or Chapter 347 (manufactured home sales financing) transactions do not need to hold licenses; however, they must be registered with this agency as registered creditors.
Examination Accommodations: When the representative of the commissioner appears at a company to conduct an examination, the company must make available a desk or table providing adequate workspace. The company must also provide a suitable chair, adequate lighting, and convenient access to a 110-volt electrical outlet in an area reasonably suited for office and administrative work.
