Texas Administrative Code
Chapter 33. Money Services Businesses
§33.53. Exemption for Debt Management Service Providers.
(a) For purposes of this section, the terms “debt
management service” and “provider” have the meanings assigned
by Texas Finance Code §394.202.
(b) A debt management service provider who, in the course
of conducting its debt management services, receives money from
consumers for distribution to the consumer’s creditors need
not obtain a money transmission license if that provider:
(1) is
registered and in good standing with the Office of Consumer Credit
Commissioner as a debt management service provider under Finance
Code Chapter 394;
(2) is in compliance
with all requirements of Finance Code Chapter 394 and 7 TAC Chapter
88 (relating to Consumer Debt Management Services); and
(3) conducts
no money transmission as defined by Finance Code §151.301,
except as necessary to provide debt management services to contractual
customers.
(c) Any debt management service provider who receives money from
consumers and who is exempted from registration by the Office of
Consumer Credit Commissioner for any reason, including under Finance
Code §394.203(c)(5), must contact the Department of Banking
to seek a determination as to whether a money transmission license
is required.
(d) Any debt management service provider exempted from
money transmission licensing under subsection (b) of this section
must immediately contact the Department of Banking in the event
that any of the conditions listed in subsection (b) of this section
change.
Source: The provisions of this §33.53
adopted to be effective January 5, 2012, 36 TexReg 9285.
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