Bill > HB1516

This bill prohibits money transmission licensees (businesses that transfer money for customers) 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 financial penalties for breaching the terms of service, though they can still close a customer's account for such violations. If a money transmission licensee attempts to impose such a fine, they would be liable to the state for a civil penalty equal to three times the amount of the original fine. The attorney general can bring an action to recover this penalty and can also seek attorney's fees and costs. The law would only apply to terms of service agreements entered into after its effective date (September 1, 2025), meaning existing agreements would be governed by previous regulations. This legislation appears aimed at protecting consumers from potentially excessive financial penalties imposed by money transmission businesses for minor or technical violations of service terms.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1516