FARMERS BRANCH, Texas (3/17/15)--Credit union-supported bills addressing home equity loans and data security have been filed in the Texas Legislature.
Rep. Gary Elkins (R-Houston) and Rep. Yvonne Davis (D-Dallas) filed HB 3478 and HB 3537, respectively, which would strengthen Texas data breach law, the Cornerstone Credit Union League reported (Leaguer March 16).
Under these bills, if a merchant retains sensitive credit or debit card information and experiences a data breach, the retailer would be required to disclose the breach to the attorney general and, as soon as possible, send notice of the breach to each financial institution that issued a credit or debit card affected by the breach.
HB 3478 would also require the attorney general be notified within 24 hours after discovery.
The bill also establishes a "Data Security Breach Victim Compensation Fund" that would pay claims to consumers who suffered financial loss in a breach and reimburse financial institutions for costs associated with the breach. The funds would come from civil penalties assessed by the attorney general of $50 per credit or debit card that is compromised.
The law, if passed, would take effect Sept. 1.
CUNA continues to press lawmakers to pass legislation that would require merchants to meet the same strict payment data security standards required of financial institutions.
Rep. Richard Raymond (D-Laredo) filed legislation to address problems with home equity loans less than $50,000. HJR 131 proposes a constitutional amendment, which specifies that the 3% fee cap applies only to fees paid to the lender or loan originator, excluding fees paid to a third party.
Therefore, certified appraisals now required under Consumer Financial Protection Bureau rules on higher cost mortgages, filing fees and document preparation fees paid to an outside lawyer would no longer count toward the 3% cap if the amendment is adopted.
If passed, the constitutional amendment would be on the ballot Nov. 3.