82R13838 CLG-D
By: Farias H.B. No. 2925
A BILL TO BE ENTITLED
AN ACT
relating to the extension of consumer credit to certain members of
the Texas National Guard and armed forces of the United States and
their dependents; providing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 4, Finance Code, is amended by
adding Chapter 353 to read as follows:
CHAPTER 353. EXTENSION OF CONSUMER CREDIT TO SERVICEMEMBERS OR
THEIR DEPENDENTS
Sec. 353.001. DEFINITIONS. In this chapter:
(1) "Consumer credit" has the meaning assigned by 10
U.S.C. Section 987.
(2) "Creditor" means a person who:
(A) is engaged in the business of extending
consumer credit; or
(B) transacts, negotiates, or services an
extension of consumer credit.
(3) "Servicemember" means a member of the United
States armed forces or a member of the Texas National Guard called
to federal active duty.
(4) "Dependent," with respect to a servicemember,
means the servicemember's spouse or dependent child.
(5) "Dependent child" means a person who is unmarried
and who:
(A) is under 18 years of age;
(B) before the person's 18th birthday, became
permanently incapable of self-support; or
(C) is under 23 years of age and is pursuing a
course of instruction at an approved educational institution.
Sec. 353.002. INAPPLICABILITY OF CHAPTER. This chapter
does not apply to:
(1) an insured depository institution, as that term is
defined by Section 3, Federal Deposit Insurance Act (12 U.S.C.
Section 1813); or
(2) an insured credit union, as that term is defined by
Section 101, Federal Credit Union Act (12 U.S.C. Section 1752).
Sec. 353.003. TERMS OF CONSUMER CREDIT EXTENDED TO CERTAIN
SERVICEMEMBERS AND DEPENDENTS; CERTAIN BENEFITS AND PROTECTIONS. A
creditor who extends consumer credit to a servicemember or a
servicemember's dependent not covered by 10 U.S.C. Section 987, as
that law existed on September 1, 2011, shall apply to those persons
the same benefits and protections that the creditor is required to
apply to a covered member of the armed forces or the covered
member's dependent under that federal law and regulations adopted
pursuant to that law.
Sec. 353.004. CRIMINAL PENALTY. (a) A creditor commits an
offense if the creditor knowingly violates 10 U.S.C. Section 987,
as that law existed on September 1, 2011, or a federal regulation
adopted pursuant to that law. An offense under this subsection is a
Class A misdemeanor.
(b) A creditor commits an offense if the creditor knowingly
violates Section 353.003. An offense under this subsection is a
Class A misdemeanor.
Sec. 353.005. REMEDIES AND ADDITIONAL PENALTIES. (a) The
remedies and rights available under this chapter are in addition to
and do not preclude any remedy otherwise available under law to a
servicemember or a servicemember's dependent, including any award
for consequential or punitive damages.
(b) On violation of this chapter, a creditor is subject to
all remedies and penalties authorized by Chapter 14.
SECTION 2. Chapter 353, Finance Code, as added by this Act,
applies only to an extension of consumer credit made on or after the
effective date of this Act. An extension of consumer credit made
before the effective date of this Act is governed by the law in
effect on the date the extension of consumer credit was made, and
the former law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.