Bill Text: TX HB953 | 2011-2012 | 82nd Legislature | Introduced


Bill Title: Relating to consumer debt owed by certain military servicemembers.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-02-28 - Referred to Pensions, Investments & Financial Services [HB953 Detail]

Download: Texas-2011-HB953-Introduced.html
  82R5892 CLG-D
 
  By: Lozano H.B. No. 953
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to consumer debt owed by certain military servicemembers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 5, Finance Code, is amended by adding
  Chapter 397 to read as follows:
  CHAPTER 397. DEFERRED COLLECTION OF CONSUMER DEBT OF CERTAIN
  MILITARY SERVICEMEMBERS
         Sec. 397.001.  DEFINITIONS. In this chapter:
               (1)  "Combat zone" means an area that has been
  designated as a combat zone by the President of the United States.
               (2)  "Consumer" means an individual who has a consumer
  debt.
               (3)  "Consumer debt" means an obligation primarily for
  personal, family, or household purposes and arising from a
  transaction.
               (4)  "Consumer reporting agency" has the meaning
  assigned by Section 20.01, Business & Commerce Code.
               (5)  "Creditor" means a party, other than a consumer,
  to a transaction involving one or more consumers.
               (6)  "Military servicemember" means a member of:
                     (A)  the armed forces of the United States;
                     (B)  the Texas National Guard or the National
  Guard of another state; or
                     (C)  a reserve component of the armed forces of
  the United States.
         Sec. 397.002.  APPLICABILITY OF CHAPTER. This chapter
  applies only to a military servicemember who is on federal active
  duty or is called to federal active duty.
         Sec. 397.003.  DEFERRED COLLECTION OR ABATEMENT OF CONSUMER
  DEBT OWED BY MILITARY SERVICEMEMBER WOUNDED IN COMBAT ZONE. (a) A
  military servicemember who incurs a wound or other injury while
  serving in a combat zone and is hospitalized for treatment of the
  wound or injury for 21 or more consecutive days is entitled to defer
  collection of or abate a suit to collect a consumer debt that the
  servicemember incurred before the date the servicemember was
  wounded.
         (b)  To obtain a deferral under this section, a servicemember
  must file with the creditor:
               (1)  an affidavit stating the facts required to be
  established by Subsection (a);
               (2)  a copy of a valid military identification card;
               (3)  a copy of the orders calling the servicemember to
  active duty in a combat zone; and
               (4)  a letter from an attending physician stating that
  the servicemember was wounded or injured while serving in a combat
  zone and has been hospitalized for 21 or more consecutive days for
  treatment of the wound or injury.
         (c)  After receiving the affidavit and other documents
  required for the deferral under Subsection (b), a creditor shall
  cease any collection efforts and may not resume those efforts or
  file suit to collect the consumer debt until:
               (1)  if the servicemember does not have to undergo
  retraining for military or nonmilitary employment because of the
  servicemember's wounds or injury, the earlier of:
                     (A)  the first anniversary of the date the
  servicemember is granted a medical release to return to active duty
  or nonmilitary employment; or
                     (B)  the date the servicemember is dishonorably
  discharged from military service; or
               (2)  if the servicemember has to undergo retraining for
  military or nonmilitary employment because of the servicemember's
  wounds or injury, the earlier of:
                     (A)  the first anniversary of the date the
  servicemember completes the retraining; or
                     (B)  the date the servicemember is dishonorably
  discharged from military service.
         (d)  To obtain an abatement of a pending suit to collect a
  consumer debt of a servicemember under this section, an affidavit
  of the servicemember or any spouse, parent, sibling, or adult child
  of the servicemember stating the facts required to be established
  by Subsection (a) and the documents described by Subsections
  (b)(2), (3), and (4) must be filed in the court in which the suit is
  pending. If no controverting affidavit is filed by the creditor or
  if, after a hearing, the court finds the servicemember is entitled
  to the deferral, the court shall abate the suit for the same period
  that would have applied to the servicemember under Subsection (c).
  The clerk of the court shall deliver a copy of the order abating the
  suit to the creditor.
         (e)  After the date the creditor receives the documentation
  necessary for deferral under Subsection (b) or after the date the
  court abates a suit filed under Subsection (d), as applicable, a
  servicemember entitled to receive a deferral under this section may
  not:
               (1)  be considered to be in default of the obligation
  and be made subject to:
                     (A)  accrual of interest on any portion of the
  obligation; or
                     (B)  a demand for payment of or acceleration of
  the remaining payments of the obligation; or
               (2)  be penalized in any other manner by the creditor
  because of the deferral.
         (f)  Notwithstanding the other provisions of this section,
  if a married servicemember who qualifies for a deferral or
  abatement of collection of debt as provided by this section dies,
  the deferral or abatement continues in effect until the earlier of:
               (1)  the first anniversary of the date of the
  servicemember's death; or
               (2)  the date the surviving spouse of the servicemember
  remarries.
         Sec. 397.004.  EXERCISE OF RIGHTS UNDER CHAPTER NOT TO
  AFFECT CERTAIN FUTURE TRANSACTIONS. Receipt by a servicemember of
  a deferral or abatement of collection of a consumer debt under this
  chapter may not provide the sole basis for:
               (1)  a denial or revocation of an extension of credit by
  a creditor or other person;
               (2)  a change by a creditor in the terms of an existing
  credit arrangement;
               (3)  a refusal by a creditor to extend future credit to
  the servicemember in substantially the amount or on substantially
  the terms requested;
               (4)  an adverse report relating to the creditworthiness
  of the servicemember or the servicemember's spouse by or to a
  consumer reporting agency; or
               (5)  an annotation in the servicemember's file by a
  consumer reporting agency identifying the servicemember as a member
  of:
                     (A)  the armed forces of the United States;
                     (B)  the Texas National Guard or the National
  Guard of another state; or
                     (C)  a reserve component of the armed forces of
  the United States.
         Sec. 397.005.  WAIVER OF RIGHT VOID.  A provision of an
  agreement that purports to be a waiver by an individual of any right
  provided by this chapter is contrary to public policy and void.
         Sec. 397.006.  CIVIL REMEDIES.  (a) A person may sue for:
               (1)  injunctive relief to prevent or restrain a
  violation of this chapter; and
               (2)  actual damages sustained as a result of a
  violation of this chapter.
         (b)  A person who successfully maintains an action under
  Subsection (a) is entitled to recover reasonable attorney's fees
  and court costs.
         (c)  If the attorney general reasonably believes that a
  person is violating or is about to violate this chapter, the
  attorney general may bring an action in the name of the state
  against the person to restrain or enjoin the person from violating
  this chapter.
         SECTION 2.  Chapter 397, Finance Code, as added by this Act,
  applies only to a member of the armed forces of the United States,
  the Texas National Guard or the National Guard of another state, or
  a reserve component of the armed forces of the United States who is
  ordered to report for or is serving on federal active duty on or
  after the effective date of this Act.
         SECTION 3.  This Act takes effect September 1, 2011.
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