Bill Text: TX HB1767 | 2017-2018 | 85th Legislature | Introduced

Texas House Bill 1767 (Prior Session Legislation)

Introduced

Bill Title: Relating to the collection of consumer debt by debt buyers.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2017-04-18 - Left pending in committee [HB1767 Detail]

Download: Texas-2017-HB1767-Introduced.html

	85R9951 EES-F

	By: Collier	H.B. No. 1767



	A BILL TO BE ENTITLED
	AN ACT
	relating to the collection of consumer debt by debt buyers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. This Act shall be known as the Fair Consumer Debt
	Collection Act.
	SECTION 2. Title 5, Finance Code, is amended by adding
	Chapter 397 to read as follows:
	CHAPTER 397. COLLECTION OF CONSUMER DEBT BY DEBT BUYERS
	Sec. 397.001. DEFINITIONS. In this chapter:
	(1) "Charged-off debt" means a consumer debt that a
	creditor has determined to be a loss or expense to the creditor
	instead of an asset.
	(2) "Consumer," "consumer debt," and "creditor" have
	the meanings assigned by Section 392.001.
	(3) "Debt buyer" means a person who purchases or
	otherwise acquires a consumer debt from a creditor or other
	subsequent owner of the consumer debt, regardless of whether the
	person collects the consumer debt, hires a third party to collect
	the consumer debt, or hires an attorney for collection litigation
	in connection with the consumer debt. The term does not include:
	(A) a person who acquires a charged-off debt
	incidental to the purchase of a portfolio that predominantly
	consists of consumer debt that has not been charged off; or
	(B) a check services company that acquires the
	right to collect on a paper or electronic negotiable instrument,
	including an Automated Clearing House (ACH) authorization to debit
	an account that has not been processed.
	(4) "Statute of limitations" means a law in this state
	that prescribes the period during which a person may bring a cause
	of action.
	Sec. 397.002. CONFLICT OF LAW. Unless otherwise expressly
	provided, this chapter prevails to the extent of any conflict
	between this chapter and any other law of this state.
	Sec. 397.003. LIMITATION ON INITIATION OF CONTACT WITH
	CONSUMER. A debt buyer may not contact or attempt to contact a
	consumer for purposes of debt collection if the debt buyer knows or
	has reason to know that a cause of action for collection of the
	consumer debt is barred by a statute of limitations.
	Sec. 397.004. INITIATION OF ACTION AGAINST OR ARBITRATION
	WITH CONSUMER. (a) A debt buyer may not bring an action against,
	initiate arbitration with, or commence any other legal proceeding
	against a consumer to collect a consumer debt if the debt buyer
	knows or has reason to know that a cause of action for collection of
	the consumer debt is barred by a statute of limitations.
	(b) A cause of action by a debt buyer against a consumer for
	collection of a consumer debt that is barred by a statute of
	limitations may not be revived by the collection of payment on the
	account of the consumer associated with the debt, an oral or written
	reaffirmation of the consumer debt, or any other method.
	Sec. 397.005. CIVIL ACTION. (a) A debt buyer who violates
	this chapter is liable to a person harmed by the violation for:
	(1) actual damages; and
	(2) reasonable attorney's fees and costs.
	(b) An action must be brought under this section not later
	than the second anniversary of the date of the last event
	constituting the alleged violation for which the action is brought.
	SECTION 3. The changes in law made by this Act apply only to
	an action of a debt buyer to collect a consumer debt if the action
	occurs on or after the effective date of this Act. An action of a
	debt buyer to collect a consumer debt that occurs before the
	effective date of this Act is governed by the law in effect
	immediately before that date, and the former law is continued in
	effect for that purpose.
	SECTION 4. This Act takes effect September 1, 2017.