Texas Senate Bill SB182

Texas 2019 - 86th Regular

Caption

Relating to the threat or pursuit of criminal charges against a consumer in association with certain extensions of consumer credit.

Impact

The introduction of SB182 represents a significant shift in the landscape of consumer credit and debt collection practices in Texas. By establishing a clear standard for what constitutes acceptable evidence before criminal complaints can be initiated, the bill aims to strengthen consumer protections. It seeks to prevent credit services organizations from leveraging the threat of criminal prosecution as a tactic to collect debts. As such, it could lead to greater accountability for these organizations and potentially reduce instances of wrongful accusations against consumers, thereby promoting fairer financial practices.

Summary

SB182 aims to regulate the conduct of credit services organizations and their representatives concerning the threat or pursuit of criminal charges against consumers in relation to extensions of consumer credit. The bill specifically prohibits these organizations from filing or threatening to file criminal complaints against consumers unless they possess sufficient extrinsic evidence indicating that the consumer has committed an offense under specified penal code sections related to theft and fraud. This legislation seeks to protect consumers from potential abuses in the credit industry by ensuring that criminal accusations are substantiated by concrete evidence.

Contention

However, the bill has garnered mixed responses among stakeholders. Proponents argue that SB182 is essential in safeguarding consumer rights and preventing financial exploitation. Critics, on the other hand, express concerns that the required standard of evidence may hinder the ability of credit services organizations to effectively manage non-payment issues. They argue that this could complicate the debt collection process and diminish the willingness of organizations to extend credit to consumers who may pose a higher risk, ultimately impacting the credit available to vulnerable populations.

Notable_points

Moreover, the bill outlines specific types of evidence that are not acceptable for pursuing criminal charges, such as insufficient funds or account closures, thus reinforcing consumer protections against frivolous claims. It emphasizes the necessity of fair practices in financial dealings and aims to align Texas laws with consumer rights standards in the financial sector.