Texas 2011 - 82nd Regular

Texas House Bill HB1222

Filed
 
Out of House Committee
5/3/11  
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to debt management services and the regulation of debt management services providers.

Impact

This legislation will significantly impact the existing framework for regulating debt management services in Texas. Providers will be required to adhere to stricter guidelines on how they charge fees, obtain consents from consumers, and handle funds. Notably, the bill introduces a requirement for providers to use trust accounts for managing consumer money, ensuring that funds are not commingled with operational funds. Additionally, it mandates that consumers receive clear documentation regarding services rendered, fees charged, and their rights related to canceling agreements, thus enhancing consumer protection in financial transactions.

Summary

House Bill 1222 aims to enhance regulations surrounding debt management services and the providers of these services in Texas. The bill introduces several amendments to the Texas Finance Code, particularly focusing on defining the roles, obligations, and limitations imposed on debt management service providers. It includes provisions for consumer counseling, fee structures, and the management of funds collected from consumers. The overall intent of HB1222 is to protect consumers from potential abuses within the debt management industry while ensuring that providers operate with transparency and integrity.

Contention

While the bill is designed to create a safer environment for consumers seeking financial help, it does not come without contention. Some financial service providers express concerns that the stringent regulations may limit their ability to serve clients effectively or may lead to increased costs for consumers. There's also apprehension about the balance between consumer protection and the operational efficiencies of the providers. Furthermore, advocates for consumer rights argue that regardless of the regulations, enforcement and compliance remain critical to ensure the bill's effectiveness in curbing unscrupulous practices within the debt management industry.

Companion Bills

TX SB141

Identical Relating to debt management services and the regulation of debt management services providers.

Previously Filed As

TX HB3827

Relating to the regulation of earned wage access services; requiring an occupational license; providing an administrative penalty; imposing fees.

TX SB2245

Relating to the regulation of earned wage access services; creating a criminal offense; providing an administrative penalty; authorizing a fee.

TX HB4611

Relating to the nonsubstantive revision of the health and human services laws governing the Health and Human Services Commission, Medicaid, and other social services.

TX HB3573

Relating to modernizing the regulation of money services businesses.

TX HB297

Relating to credit services organizations and extensions of consumer credit facilitated by credit services organizations; increasing a criminal penalty.

TX SB156

Relating to the regulation and management of the use of groundwater and regulation of groundwater conservation districts.

TX SB895

Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.

TX HB3275

Relating to the regulation of consumer credit transactions and the regulatory authority of the consumer credit commissioner; changing a fee.

TX SB1371

Relating to the regulation of consumer credit transactions and the regulatory authority of the consumer credit commissioner; changing a fee.

TX HB3015

Relating to exclusive contracts for municipal solid waste management services.

Similar Bills

TX SB141

Relating to debt management services and the regulation of debt management services providers.

MS SB2019

Mississippi Debt Management Services Act; extend repealer.

MS HB687

Mississippi Debt Management Services Act; extend repealer on.

TX SB2233

Relating to the regulation of debt management service providers and a study regarding the business of consumer debt settlement.

CO HB1181

Guaranteed Asset Protection Agreements

IL HB1279

DEBT RESOLUTION SERVICES ACT

IL HB1289

DEBT RESOLUTION SERVICES ACT

IL SB1685

DEBT RESOLUTION SERVICES ACT