Credit Access Businesses (CAB) are credit services organizations that obtain or assist consumers in obtaining extensions of consumer credit in the form of deferred presentment transactions or motor vehicle title loans. CABs are governed by Chapter 393 of the Texas Finance Code. In addition, the City of Longview adopted an ordinance which addresses areas where Chapter 393 is silent.
The local ordinance requires credit access businesses to register annually with the Longview Police Department, maintain record of transactions, verify income of customers, conspicuously display a Certificate of Registration at their place of business, and provide consumers with references to non-profit agencies that provide financial education and training programs.
For borrowers, a payday advance cannot be in an amount more than 20% of gross monthly income. A title loan cannot exceed the lesser of 3% of gross annual income or 70% of the retail value of the vehicle. Consumer complaints about a credit access business should be directed to City of Longview Development Services.