Texas 2009 - 81st Regular

Texas House Bill HB343 Compare Versions

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

Old	New	Differences
1	1	81R2846 CLG-D
2	2	By: Herrero H.B. No. 343
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to consumer debt owed by certain military servicemembers.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Title 5, Finance Code, is amended by adding
10	10	Chapter 397 to read as follows:
11	11	CHAPTER 397. DEFERRED COLLECTION OF CONSUMER DEBT OF CERTAIN
12	12	MILITARY SERVICEMEMBERS
13	13	Sec. 397.001. DEFINITIONS. In this chapter:
14	14	(1) "Combat zone" means an area that has been
15	15	designated as a combat zone by the President of the United States.
16	16	(2) "Consumer" means an individual who has a consumer
17	17	debt.
18	18	(3) "Consumer debt" means an obligation primarily for
19	19	personal, family, or household purposes and arising from a
20	20	transaction.
21	21	(4) "Creditor" means a party, other than a consumer,
22	22	to a transaction involving one or more consumers.
23	23	(5) "Military servicemember" means a member of:
24	24	(A) the armed forces of the United States;
25	25	(B) the Texas National Guard or the National
26	26	Guard of another state; or
27	27	(C) a reserve component of the armed forces of
28	28	the United States.
29	29	Sec. 397.002. APPLICABILITY OF CHAPTER. This chapter
30	30	applies only to a military servicemember who is on federal active
31	31	duty or is called to federal active duty.
32	32	Sec. 397.003. DEFERRED COLLECTION OF CONSUMER DEBT OWED BY
33	33	MILITARY SERVICEMEMBER WOUNDED IN COMBAT ZONE. (a) A military
34	34	servicemember who incurs a wound or other injury while serving in a
35	35	combat zone and is hospitalized for treatment of the wound or injury
36	36	for 21 or more consecutive days is entitled to defer collection of
37	37	or abate a suit to collect a consumer debt that the servicemember
38	38	incurred before the date the servicemember was wounded.
39	39	(b) To obtain a deferral under this section, a servicemember
40	40	must file with the creditor:
41	41	(1) an affidavit stating the facts required to be
42	42	established by Subsection (a);
43	43	(2) a copy of a valid military identification card;
44	44	(3) a copy of the orders calling the servicemember to
45	45	active duty in a combat zone; and
46	46	(4) a letter from an attending physician stating that
47	47	the servicemember was wounded or injured while serving in a combat
48	48	zone and has been hospitalized for 21 or more consecutive days for
49	49	treatment of the wound or injury.
50	50	(c) After receiving the affidavit and other documents
51	51	required for the deferral under Subsection (b), a creditor shall
52	52	cease any collection efforts and may not resume those efforts or
53	53	file suit to collect the consumer debt until:
54	54	(1) if the servicemember does not have to undergo
55	55	retraining for military or nonmilitary employment because of the
56	56	servicemember's wounds or injury, the earlier of:
57	57	(A) the first anniversary of the date the
58	58	servicemember is granted a medical release to return to active duty
59	59	or nonmilitary employment; or
60	60	(B) the date the servicemember is dishonorably
61	61	discharged from military service; or
62	62	(2) if the servicemember has to undergo retraining for
63	63	military or nonmilitary employment because of the servicemember's
64	64	wounds or injury, the earlier of:
65	65	(A) the first anniversary of the date the
66	66	servicemember completes the retraining; or
67	67	(B) the date the servicemember is dishonorably
68	68	discharged from military service.
69	69	(d) To obtain an abatement of a pending suit to collect a
70	70	consumer debt of a servicemember under this section, an affidavit
71	71	of the servicemember or any spouse, parent, sibling, or adult child
72	72	of the servicemember stating the facts required to be established
73	73	by Subsection (a) and the documents described by Subsections
74	74	(b)(2), (3), and (4) must be filed in the court in which the suit is
75	75	pending. If no controverting affidavit is filed by the creditor or
76	76	if, after a hearing, the court finds the servicemember is entitled
77	77	to the deferral, the court shall abate the suit for the same period
78	78	that would have applied to the servicemember under Subsection (c).
79	79	The clerk of the court shall deliver a copy of the order abating the
80	80	suit to the creditor.
81	81	(e) After the date the creditor receives the documentation
82	82	necessary for deferral under Subsection (b) or after the date the
83	83	court abates a suit filed under Subsection (d), as applicable, a
84	84	servicemember entitled to receive a deferral under this section may
85	85	not:
86	86	(1) be considered to be in default of the obligation
87	87	and be made subject to:
88	88	(A) accrual of interest on any portion of the
89	89	obligation; or
90	90	(B) a demand for payment of or acceleration of
91	91	the remaining payments of the obligation; or
92	92	(2) be penalized in any other manner by the creditor
93	93	because of the deferral.
94	94	(f) Notwithstanding the other provisions of this section,
95	95	if a married servicemember who qualifies for a deferral or
96	96	abatement of collection of debt as provided by this section dies,
97	97	the deferral or abatement continues in effect until the earlier of:
98	98	(1) the first anniversary of the date of the
99	99	servicemember's death; or
100	100	(2) the date the surviving spouse of the servicemember
101	101	remarries.
102	102	Sec. 397.004. EXERCISE OF RIGHTS UNDER CHAPTER NOT TO
103	103	AFFECT CERTAIN FUTURE TRANSACTIONS. Receipt by a servicemember of
104	104	a deferral or abatement of collection of a consumer debt under this
105	105	chapter may not provide the sole basis for:
106	106	(1) a denial or revocation of an extension of credit by
107	107	a creditor or other person;
108	108	(2) a change by a creditor in the terms of an existing
109	109	credit arrangement;
110	110	(3) a refusal by a creditor to extend future credit to
111	111	the servicemember in substantially the amount or on substantially
112	112	the terms requested;
113	113	(4) an adverse report relating to the creditworthiness
114	114	of the servicemember or the servicemember's spouse by or to a credit
115	115	bureau; or
116	116	(5) an annotation in the servicemember's file by a
117	117	credit bureau identifying the servicemember as a member of:
118	118	(A) the armed forces of the United States;
119	119	(B) the Texas National Guard or the National
120	120	Guard of another state; or
121	121	(C) a reserve component of the armed forces of
122	122	the United States.
123	123	Sec. 397.005. WAIVER OF RIGHT VOID. A provision of a
124	124	contract or other agreement that purports to be a waiver by an
125	125	individual of any right provided by this chapter is contrary to
126	126	public policy and void.
127	127	Sec. 397.006. CIVIL REMEDIES. (a) A person may sue for:
128	128	(1) injunctive relief to prevent or restrain a
129	129	violation of this chapter; and
130	130	(2) actual damages sustained as a result of a
131	131	violation of this chapter.
132	132	(b) A person who successfully maintains an action under
133	133	Subsection (a) is entitled to attorney's fees reasonably related to
134	134	the amount of work performed and costs.
135	135	(c) If the attorney general reasonably believes that a
136	136	person is violating or is about to violate this chapter, the
137	137	attorney general may bring an action in the name of the state
138	138	against the person to restrain or enjoin the person from violating
139	139	this chapter.
140	140	SECTION 2. Chapter 397, Finance Code, as added by this Act,
141	141	applies only to a member of the armed forces of the United States,
142	142	the Texas National Guard or the National Guard of another state, or
143	143	a reserve component of the armed forces of the United States who is
144	144	ordered to report for or is serving on federal active duty on or
145	145	after the effective date of this Act.
146	146	SECTION 3. This Act takes effect September 1, 2009.