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