On March 6, the Finance Commission of Texas published three proposed rules from the Office of Consumer Credit Commissioner (OCCC) in the Texas Register, including a proposal establishing a new regulatory framework for commercial sales-based financing providers and brokers under Texas Finance Code, Chapter 398, which was enacted by HB 700 in June 2025. The proposed rules require providers and brokers to register through NMLS, provide accurate pre-transaction disclosures, and maintain detailed transaction records for at least four years. The proposal also prohibits unfair, deceptive, and abusive acts and practices — including false statements, undisclosed fees, and improperly characterizing consumer transactions as commercial — and bars providers from automatically debiting a recipient’s deposit account unless they hold a first-priority, perfected security interest in all of the recipient’s accounts receivable. The rule would impose administrative penalties of up to $10,000 per violation for noncompliance.
The OCCC also published a proposal to adjust the license term for motor vehicle and commercial vehicle sales finance licensees from a November-to-October cycle to a January-to-December cycle to align with a planned transition to NMLS. The third proposal amends recordkeeping requirements for regulated lenders following a rule review, adding new requirements for licensees to maintain written information security program policies and procedures consistent with the FTC’s Safeguards Rule and to retain data breach notifications for four years. Comments on the three proposed rules must be submitted by April 5.
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