Alert

November 11, 2025

Texas OCCC Will Hold Webinar on Rulemaking Implementing H.B. 700

The Texas Office of Consumer Credit Commissioner recently announced that it will be holding an online webinar on November 19, 2025, at 2:00 p.m. central time to discuss plans for future rulemaking on commercial sales-based financing transactions to implement House Bill 700, which was enacted in June 2025. Registration for the webinar is available here.

H.B. 700 regulates sales-based financing transactions and requires providers and brokers of sales-based financing transactions to register with the OCCC. The law also bans sales-based financing providers from automatically debiting customer bank accounts in most circumstances. The law went into effect on September 1, 2025.

The OCCC provided an advance notice of the proposed rules, which includes a description of the anticipated proposed rules, a preliminary timeline, and questions for stakeholders. Of note, the OCCC anticipates that the rules will include a prohibition on unfair and misleading practices. Prohibited practices may include the following:

  • false, misleading, or inaccurate advertisements, solicitations, disclosures, or contract language;
  • a provider's or broker's failure to perform contracted-for services (or inaccurate descriptions of contracted-for services);
  • charging fees or other amounts that were not specifically disclosed and contracted for;
  • waivers of statutory rights;
  • foreclosing on collateral without complying with applicable requirements (e.g., Texas Business & Commerce Code, Chapter 9);
  • improperly characterizing a transaction as a "commercial" transaction when the advanced funds will be used for individual, family, or household purposes; and
  • a device or subterfuge to evade regulatory requirements.

Prior Alerts:

Texas Governor Signs H.B. 700
Texas House Passes Bill That Effectively Bans Sales-Based Financing Transactions; Bill Goes to Governor's Desk
Texas Senate Passes Sales-Based Financing Bill with a Proposed Ban on Most ACH Debits; Bill Heads Back to House