Experts say the Texas Legislature needs to pass legislation to help the state’s students better understand the rules governing how cards are issued and how they can be used to pay for college.
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A bill by state Sen. Eddie Lucio Jr. and state Rep. Mike McClellan would allow students to request a refund of the money they spent on a card in order to make a claim under a state law that allows a person to make an electronic payment.
The bill passed the Senate on Tuesday.
If it becomes law, it would be the second time a similar bill has been passed by the Legislature.
State law states students who want to dispute a card should first ask their college to reverse the card’s purchase.
Students can only get refunds from schools if they first contact the college to find out whether they have a valid credit card.
The issue has been contentious because of what critics say are unfair rules for the issuance of cards.
McClelynas bill would require schools to refund students a portion of the fee for each credit card they issue.
Students could only get the refund if they paid off their card in full within 90 days of their first purchase, which is usually within two months of the date the card was issued.
State Rep. David Simpson, a Republican from Austin who has been a vocal opponent of the new rules, said students need to know that there are additional restrictions in place for credit card issuers and that the law currently only applies to cards issued after Aug. 1, 2019.
He said the law was created to ensure that students can make their purchases in a timely manner and make purchases using credit cards that have been in good standing.