Are There Consumer Protections in Place When Purchasing Retail Financial Products or Services from a CSO?
Yes, many. CSOs in Texas: • Disclose the cost of the service they provide both as a dollar amount and as part of an annual percentage rate; • Comply with all applicable laws and regulations including Chapter 393 of the Texas Finance Code; • Allow consumers to change their mind about obtaining a small, short term loan for three days without charge; • Only collect past due loans in a professional, fair and lawful manner; and • Never threaten or pursue criminal action against a borrower because of a default.
