Bill Text: TX SB254 | 2011-2012 | 82nd Legislature | Introduced

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Bill Title: Relating to the extension of consumer credit to certain members of the Texas National Guard and armed forces of the United States and their dependents; providing a penalty.

Sponsorship: Partisan Bill (Democrat 3)

Status: (Introduced - Dead) 2011-02-23 - Co-author authorized [SB254 Detail]

Download: Texas-2011-SB254-Introduced.html

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By: Davis S.B. No. 254

A BILL TO BE ENTITLED
AN ACT
relating to the extension of consumer credit to certain members of
the Texas National Guard and armed forces of the United States and
their dependents; providing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 4, Finance Code, is amended by
adding Chapter 353 to read as follows:
CHAPTER 353. EXTENSION OF CONSUMER CREDIT TO SERVICEMEMBERS OR
THEIR DEPENDENTS
Sec. 353.001. DEFINITIONS. In this chapter:
(1) "Creditor" means a person who:
(A) is engaged in the business of extending
consumer credit; or
(B) transacts, negotiates, or services an
extension of consumer credit.
(2) "Extension of consumer credit" means the right to
defer payment of debt offered or granted primarily for personal,
family, or household purposes or to incur the debt and defer its
payment.
(3) "Servicemember" means a member of the United
States armed forces or a member of the Texas National Guard called
to federal active duty.
(4) "Dependent," with respect to a servicemember,
means the servicemember's spouse or dependent child.
(5) "Dependent child" means a person who is unmarried
and who:
(A) is under 18 years of age;
(B) before the person's 18th birthday, became
permanently incapable of self-support; or
(C) is under 23 years of age and is pursuing a
course of instruction at an approved educational institution.
Sec. 353.002. INAPPLICABILITY OF CHAPTER. This chapter
does not apply to:
(1) an insured depository institution, as that term is
defined by Section 3, Federal Deposit Insurance Act (12 U.S.C.
Section 1813); or
(2) an insured credit union, as that term is defined by
Section 101, Federal Credit Union Act (12 U.S.C. Section 1752).
Sec. 353.003. FEDERAL REQUIREMENTS APPLICABLE. (a) A
creditor who extends consumer credit to a servicemember or a
servicemember's dependent must comply with Section 670, Public Law
109-364 or any regulation adopted pursuant thereto.
(b) A creditor shall apply the protections under Section
670, Public Law 109-364 to servicemembers and servicemember's
dependents as defined under Section 353.001.
(c) A violation of any provision of Section 670, Public Law
109-364 or any regulation adopted pursuant thereto shall be deemed
a violation of this chapter.
Sec. 353.004. CRIMINAL PENALTY. A creditor who knowingly
violates this chapter commits an offense. An offense under this
section is a Class A misdemeanor.
Sec. 353.005. REMEDIES AND ADDITIONAL PENALTIES. (a) The
remedies and rights available under this chapter are in addition to
and do not preclude any remedy otherwise available under law to a
servicemember or a servicemember's dependent, including any award
for consequential or punitive damages.
(b) On violation of this chapter, a creditor is subject to
all remedies and penalties authorized by Chapter 14.
SECTION 2. Chapter 353, Finance Code, as added by this Act,
applies only to an extension of consumer credit made on or after the
effective date of this Act. An extension of consumer credit made
before the effective date of this Act is governed by the law in
effect on the date the extension of consumer credit was made, and
the former law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.