Texas 2019 - 86th Regular

Texas House Bill HB996 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 996
	1	+	By: Collier, et al. (Senate Sponsor - Paxton) H.B. No. 996
	2	+	(In the Senate - Received from the House April 11, 2019;
	3	+	April 15, 2019, read first time and referred to Committee on
	4	+	Business & Commerce; May 20, 2019, reported adversely, with
	5	+	favorable Committee Substitute by the following vote: Yeas 7,
	6	+	Nays 0; May 20, 2019, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 996 By: Paxton
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to the collection of consumer debt by debt buyers.
6	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	15		SECTION 1. This Act shall be known as the Fair Consumer Debt
8	16		Collection Act.
9	17		SECTION 2. Subchapter D, Chapter 392, Finance Code, is
10	18		amended by adding Section 392.307 to read as follows:
11	19		Sec. 392.307. COLLECTION OF CERTAIN CONSUMER DEBT BY DEBT
12	20		BUYERS. (a) In this section:
13	21		(1) "Charged-off debt" means a consumer debt that a
14	22		creditor has determined to be a loss or expense to the creditor
15	23		instead of an asset.
16	24		(2) "Debt buyer" means a person who purchases or
17	25		otherwise acquires a consumer debt from a creditor or other
18	26		subsequent owner of the consumer debt, regardless of whether the
19	27		person collects the consumer debt, hires a third party to collect
20	28		the consumer debt, or hires an attorney to pursue collection
21	29		litigation in connection with the consumer debt. The term does not
22	30		include:
23	31		(A) a person who acquires in-default or
24	32		charged-off debt that is incidental to the purchase of a portfolio
25	33		that predominantly consists of consumer debt that has not been
26	34		charged off; or
27	35		(B) a check services company that acquires the
28	36		right to collect on a paper or electronic negotiable instrument,
29	37		including an Automated Clearing House (ACH) authorization to debit
30	38		an account that has not been processed.
31	39		(b) Unless otherwise expressly provided, this section
32	40		prevails to the extent of any conflict between this section and any
33	41		other law of this state.
34	42		(c) A debt buyer may not, directly or indirectly, commence
35	43		an action against or initiate arbitration with a consumer to
36	44		collect a consumer debt after the expiration of the applicable
37	45		limitations period provided by Section 16.004, Civil Practice and
38	46		Remedies Code, or Section 3.118, Business & Commerce Code.
39	47		(d) If an action to collect a consumer debt is barred under
40	48		Subsection (c), the cause of action is not revived by a payment of
41	49		the consumer debt, an oral or written reaffirmation of the consumer
42	50		debt, or any other activity on the consumer debt.
43	51		(e) If a debt buyer is engaged in debt collection for a
44	52		consumer debt for which an action to collect the debt is barred
45	53		under Subsection (c), the debt buyer, or a debt collector acting on
46	54		behalf of the debt buyer, shall provide the following notice in the
47	55		initial written communication with the consumer relating to the
48	56		debt collection:
49	57		(1) if the reporting period for including the consumer
50	58		debt in a consumer report prepared by a consumer reporting agency
51	59		has not expired under Section 605, Fair Credit Reporting Act (15
52	60		U.S.C. Section 1681c), and the debt buyer furnishes to a consumer
53	61		reporting agency information regarding the consumer debt, "THE LAW
54	62		LIMITS HOW LONG YOU CAN BE SUED ON A DEBT. BECAUSE OF THE AGE OF
55	63		YOUR DEBT, WE WILL NOT SUE YOU FOR IT. IF YOU DO NOT PAY THE DEBT,
56	64		[INSERT NAME OF DEBT BUYER] MAY CONTINUE TO REPORT IT TO CREDIT
57	65		REPORTING AGENCIES AS UNPAID FOR AS LONG AS THE LAW PERMITS THIS
58	66		REPORTING. THIS NOTICE IS REQUIRED BY LAW.";
59	67		(2) if the reporting period for including the consumer
60	68		debt in a consumer report prepared by a consumer reporting agency
61	69		has not expired under Section 605, Fair Credit Reporting Act (15
62	70		U.S.C. Section 1681c), but the debt buyer does not furnish to a
63	71		consumer reporting agency information regarding the consumer debt,
64	72		"THE LAW LIMITS HOW LONG YOU CAN BE SUED ON A DEBT. BECAUSE OF THE
65	73		AGE OF YOUR DEBT, WE WILL NOT SUE YOU FOR IT. THIS NOTICE IS
66	74		REQUIRED BY LAW."; or
67	75		(3) if the reporting period for including the consumer
68	76		debt in a consumer report prepared by a consumer reporting agency
69	77		has expired under Section 605, Fair Credit Reporting Act (15 U.S.C.
70	78		Section 1681c), "THE LAW LIMITS HOW LONG YOU CAN BE SUED ON A DEBT.
71	79		BECAUSE OF THE AGE OF YOUR DEBT, WE WILL NOT SUE YOU FOR IT, AND WE
72	80		WILL NOT REPORT IT TO ANY CREDIT REPORTING AGENCY. THIS NOTICE IS
73	81		REQUIRED BY LAW."
74	82		(f) A notice required under Subsection (e) must be in at
75	83		least 12-point type that is boldfaced, capitalized, or underlined
76	84		or otherwise conspicuously set out from the surrounding written
77	85		material.
78	86		SECTION 3. Section 392.402, Finance Code, is amended by
79	87		amending Subsection (a) and adding Subsection (d) to read as
80	88		follows:
81	89		(a) Except as provided by Subsection (d), a [A] person
82	90		commits an offense if the person violates this chapter.
83	91		(d) This section does not apply to a violation of Section
84	92		392.307.
85	93		SECTION 4. The changes in law made by this Act apply only to
86	94		an action of a debt buyer to collect a consumer debt if the action
87	95		occurs on or after the effective date of this Act. An action of a
88	96		debt buyer to collect a consumer debt that occurs before the
89	97		effective date of this Act is governed by the law in effect
90	98		immediately before that date, and the former law is continued in
91	99		effect for that purpose.
92	100		SECTION 5. This Act takes effect September 1, 2019.
93		-	______________________________ ______________________________
94		-	President of the Senate Speaker of the House
95		-	I certify that H.B. No. 996 was passed by the House on April
96		-	11, 2019, by the following vote: Yeas 120, Nays 20, 3 present, not
97		-	voting; and that the House concurred in Senate amendments to H.B.
98		-	No. 996 on May 24, 2019, by the following vote: Yeas 133, Nays 7, 2
99		-	present, not voting.
100		-	______________________________
101		-	Chief Clerk of the House
102		-	I certify that H.B. No. 996 was passed by the Senate, with
103		-	amendments, on May 22, 2019, by the following vote: Yeas 31, Nays
104		-	0.
105		-	______________________________
106		-	Secretary of the Senate
107		-	APPROVED: __________________
108		-	Date
109		-	__________________
110		-	Governor
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