Bill > SB512

This bill prohibits money transmission licensees (financial businesses that transfer money) from including monetary fines or penalties in their terms of service agreements for violations of those agreements. Specifically, the bill prevents these businesses from charging customers monetary penalties for breaching the terms of service, though they can still close a customer's account for such violations. If a money transmission licensee violates this prohibition, they will be liable for a civil penalty equal to three times the amount of the fine they attempted to impose, which can be recovered by the attorney general through legal action. The bill applies only to terms of service agreements entered into after its effective date (September 1, 2025), and the law modifies the existing Finance Code by adding a new section under Subchapter G that outlines these restrictions. The goal appears to be protecting consumers from potentially excessive financial penalties imposed by money services businesses for minor terms of service infractions.

Business and Industry, Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB512