Texas Senate Bill SB2167

Texas 2017 - 85th Regular

Caption

Relating to the collection of consumer debt by debt buyers.

Impact

The enactment of SB2167 would lead to significant changes in how debt buyers operate within the state of Texas. It prohibits any legal action or arbitration against consumers if the debt is deemed uncollectible due to a passed statute of limitations. The bill's provisions are designed to empower consumers by allowing them to contest any attempts to collect debts that they believe are legally unenforceable, potentially alleviating the burden of old debts and providing a clearer path to financial recovery.

Summary

Senate Bill 2167, known as the Fair Consumer Debt Collection Act, seeks to regulate the practices of debt buyers in the collection of consumer debts. The bill introduces a new chapter in the Texas Finance Code that establishes guidelines for debt buyers, aiming to protect consumers from aggressive collection tactics. Key provisions specify that debt buyers may not initiate contact with consumers if they are aware that a statute of limitations has barred the collection of the debt. This measure intends to prevent companies from pursuing outdated debts, thereby safeguarding consumers from unfair practices.

Contention

Notable points of contention surrounding SB2167 include concerns about the potential impact on small debt collection businesses. While proponents argue that the bill enhances consumer protections and regulates predatory practices, critics may raise alarms about the financial strain it could impose on legitimate debt recovery efforts. Balancing consumer rights with the interests of debt buyers poses a challenge as the legislature debates the implications of this new regulatory framework.