85R3522 DDT-F
By: Giddings H.B. No. 975
A BILL TO BE ENTITLED
AN ACT
relating to the threat or pursuit of criminal charges against a
consumer in association with certain extensions of consumer credit;
providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 393, Finance Code, is amended by adding
Subchapter E-1 to read as follows:
SUBCHAPTER E-1. CRIMINAL CHARGES AGAINST CONSUMER
Sec. 393.421. CRIMINAL CHARGE AGAINST CONSUMER. (a) A
credit services organization or a representative of a credit
services organization may not, unless the credit services
organization or representative of the credit services organization
has extrinsic evidence sufficient to prove that the consumer has
committed an offense under Section 31.03, 31.04, or 32.41, Penal
Code:
(1) file a criminal complaint or threaten to file a
criminal complaint related to an extension of consumer credit
against the consumer for an offense under Section 31.03, 31.04, or
32.41, Penal Code; or
(2) refer or threaten to refer a consumer to a
prosecutor under Article 102.007, Code of Criminal Procedure, for
the collection and processing of a check or similar sight order that
was issued in relation to an extension of consumer credit.
(b) Notwithstanding the presumptions provided by Sections
31.06(a) and 32.41(b), Penal Code, evidence of a denied or returned
payment due to insufficient funds or account closure is not
extrinsic evidence of an offense under Section 31.03, 31.04, or
32.41, Penal Code.
(c) Extrinsic evidence of an offense under Section 31.03,
31.04, or 32.41, Penal Code, includes evidence that the consumer
was not an authorized user of the account on which the payment was
drawn at the time the payment was provided.
Sec. 393.422. CIVIL REMEDIES. (a) For a violation of this
subchapter against a consumer, the consumer may bring an action to:
(1) obtain injunctive relief to restrain the violation
or to correct any negative credit issues caused by the violation;
(2) void the contract for the debt or the debt
services; or
(3) recover any actual damages sustained as a result
of the violation.
(b) A consumer who successfully maintains an action under
Subsection (a) is entitled to reasonable attorney's fees and court
costs.
(c) If the attorney general reasonably believes that a
person is violating or is about to violate this subchapter, the
attorney general may bring an action in the name of this state
against the person to restrain or enjoin the person from violating
this subchapter.
(d) A consumer who successfully maintains an action under
this section for a violation of this subchapter is entitled to not
less than $100 for each violation.
SECTION 2. This Act takes effect September 1, 2017.