Texas 2009 - 81st Regular

Texas House Bill HB342 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R2670 CLG-D
2	2	By: Herrero H.B. No. 342
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a consumer debt owed by certain military personnel
8	8	called to active duty.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 392, Finance Code, is amended by adding
11	11	Subchapter F to read as follows:
12	12	SUBCHAPTER F. DEFERRED COLLECTION OF CONSUMER DEBT
13	13	Sec. 392.501. DEFERRED COLLECTION OF DEBT OWED BY CERTAIN
14	14	MILITARY PERSONNEL CALLED TO ACTIVE DUTY. (a) An individual is
15	15	entitled to defer collection of a consumer debt or abate a suit to
16	16	collect a consumer debt if the individual:
17	17	(1) is a member of:
18	18	(A) the state military forces, as defined by
19	19	Section 431.001, Government Code; or
20	20	(B) a reserve component of the armed forces of
21	21	the United States;
22	22	(2) is ordered to active duty for a period of 180 days
23	23	or more;
24	24	(3) incurred the obligation before the date the
25	25	individual was ordered to active duty; and
26	26	(4) because of the individual's military service, is
27	27	earning at least 10 percent less income than on the date the debt
28	28	was incurred and, as a result of this loss of income, is unable to
29	29	pay the debt.
30	30	(b) To obtain a deferral, an individual must send to the
31	31	creditor or debt collector:
32	32	(1) an affidavit stating the facts required to be
33	33	established by Subsection (a);
34	34	(2) a copy of a valid military identification card;
35	35	and
36	36	(3) a copy of the orders calling the individual to
37	37	active duty.
38	38	(c) Not later than the fourth day after the date the
39	39	individual seeking the deferral sends the affidavit and other
40	40	documents required for the deferral under Subsection (b) or the
41	41	date the creditor or debt collector receives those documents,
42	42	whichever occurs first, the creditor or debt collector shall cease
43	43	any collection efforts and may not resume those efforts or file suit
44	44	to collect the consumer debt until the 91st day after the date the
45	45	individual is no longer on active duty.
46	46	(d) To obtain an abatement of a pending suit to collect a
47	47	consumer debt of an individual, an affidavit of the individual or,
48	48	if authorized by the individual, an affidavit of any spouse,
49	49	parent, sibling, or adult child of the individual stating the facts
50	50	required to be established by Subsection (a) and the documents
51	51	described by Subsections (b)(2) and (3) must be filed in the court
52	52	in which the suit is pending. On the filing of the affidavit and
53	53	other documents described by this subsection, the court shall abate
54	54	the suit until the 91st day after the date the individual no longer
55	55	is on active duty. The court shall also abate the suit for the same
56	56	period prescribed by this subsection regardless of whether any of
57	57	the documents described by this subsection have been filed with the
58	58	court if, after a hearing, the court finds the individual is
59	59	entitled to the deferral. The clerk of the court shall deliver a
60	60	copy of the order abating the suit to the creditor and any
61	61	applicable debt collector.
62	62	(e) From the date the creditor or debt collector is required
63	63	to cease collection efforts under Subsection (c) or the date the
64	64	court abates a suit under Subsection (d), whichever occurs first,
65	65	an individual entitled to receive a deferral under this section
66	66	shall not, during the period of deferral or abatement:
67	67	(1) be considered to be in default of the obligation;
68	68	(2) be made subject to accrual of interest on any
69	69	portion of the obligation;
70	70	(3) be subject to a demand for payment of or
71	71	acceleration of the remaining payments of the obligation;
72	72	(4) be subject to any increase in the periodic payment
73	73	amount of the obligation; or
74	74	(5) at any time be penalized in any other manner by the
75	75	creditor or debt collector because of the deferral.
76	76	(f) Notwithstanding the other provisions of this section,
77	77	if a married individual who qualifies for a deferral or abatement of
78	78	collection of debt as provided by this section dies, the deferral or
79	79	abatement continues in effect until the earlier of:
80	80	(1) the 91st day after the date of the individual's
81	81	death; or
82	82	(2) the date the surviving spouse of the individual
83	83	remarries.
84	84	Sec. 392.502. EXERCISE OF RIGHTS UNDER SUBCHAPTER NOT TO
85	85	AFFECT CERTAIN FUTURE TRANSACTIONS. Receipt by an individual of a
86	86	deferral or abatement of collection of a consumer debt as provided
87	87	by this subchapter shall not provide the sole basis for:
88	88	(1) a denial or revocation of an extension of credit by
89	89	a creditor, debt collector, or other person;
90	90	(2) a change by a creditor or debt collector in the
91	91	terms of an existing credit arrangement without the individual's
92	92	prior consent;
93	93	(3) a refusal by a creditor or debt collector to extend
94	94	future credit to the individual in substantially the amount or on
95	95	substantially the terms requested;
96	96	(4) an adverse report relating to the creditworthiness
97	97	of the individual by or to a credit bureau; or
98	98	(5) an annotation in the individual's file by a credit
99	99	bureau identifying the individual as a member of the state military
100	100	forces or a reserve component of the armed forces of the United
101	101	States.
102	102	Sec. 392.503. WAIVER OF RIGHT VOID. A provision of a
103	103	contract or other agreement that purports to be a waiver by an
104	104	individual of any right provided by this subchapter is contrary to
105	105	public policy and void.
106	106	Sec. 392.504. TOLLING OF STATUTE OF LIMITATIONS. The
107	107	period of an individual's military service may not be included in
108	108	computing any period limited by the law for the bringing of any
109	109	action or proceeding under this subchapter.
110	110	SECTION 2. Subchapter F, Chapter 392, Finance Code, as
111	111	added by this Act, applies only to a member of the state military
112	112	forces or a reserve component of the armed forces of the United
113	113	States who is ordered to report for or is serving on active duty on
114	114	or after the effective date of this Act.
115	115	SECTION 3. This Act takes effect immediately if it receives
116	116	a vote of two-thirds of all the members elected to each house, as
117	117	provided by Section 39, Article III, Texas Constitution. If this
118	118	Act does not receive the vote necessary for immediate effect, this
119	119	Act takes effect September 1, 2009.