Texas House Bill HB3058

Texas 2015 - 84th Regular

Caption

Relating to the threat or pursuit of criminal charges against a consumer in association with certain extensions of consumer credit; providing a civil penalty; adding a provision subject to a criminal penalty.

Impact

The bill intends to modify the Texas Finance Code by adding a new subchapter that establishes clear guidelines regarding the relationships between consumers and credit services. By imposing restrictions on the ability to file criminal complaints without valid evidence, the bill aims to safeguard consumers from potential abuse and wrongful accusations, shifting the balance of power towards consumer rights within the credit market.

Summary

House Bill 3058 aims to address the misuse of criminal charges associated with consumer credit. Specifically, it prohibits credit services organizations from threatening or filing criminal complaints against consumers unless there is sufficient evidence of an offense in accordance with the Penal Code. This bill serves as a protective measure for consumers against what may be perceived as intimidation tactics employed by credit service organizations during collection processes.

Contention

Debate surrounding HB 3058 may arise from differing views on the balance between necessary credit enforcement measures and consumer protections. Proponents argue that the bill is a vital step towards ensuring fairness and transparency in the credit system, reducing the likelihood of consumers being wrongfully prosecuted for debts. However, opponents may express concerns regarding the implications for credit services organizations, arguing that without the ability to leverage potential criminal consequences, there could be a rise in non-compliance among consumers regarding their credit obligations.