Texas House Bill HB343

Texas 2009 - 81st Regular

• Filed: 11/21/08

Caption

Relating to consumer debt owed by certain military servicemembers.

Impact

If enacted, HB 343 would have significant implications for state laws regarding consumer debt collection. It specifically creates provisions that protect wounded servicemembers from adverse credit actions while they are incapacitated due to their injuries. By mandating that creditors cease collection efforts during the deferment period, the bill not only safeguards the financial interests of servicemembers but also prevents undue stress that could complicate their recovery. This aligns with broader federal policies aimed at providing protections for military personnel under similar circumstances.

Summary

House Bill 343 addresses the issue of consumer debt owed by certain military servicemembers, particularly focusing on those injured while serving in a combat zone. The bill establishes a legal framework that allows servicemembers who are wounded and hospitalized for an extended period to defer the collection of their consumer debts incurred prior to their injury. This legislative measure reflects an effort to provide financial relief and protection to servicemembers who may find themselves in difficult financial situations due to their military service.

Contention

Notable points of contention surrounding HB 343 could arise from the potential impact on creditors and the financial industry, which may argue that such protections could incentivize irresponsibility among borrowers. Additionally, there may be discussions about the extent to which the bill could be seen as placing an undue burden on creditors, particularly small businesses, who rely on payments to maintain their operations. Balancing the need for servicemember protections against the rights of creditors and the overall implications for the financial services ecosystem remains a central theme in the discussions about this bill.