Texas House Bill HB3002

Texas 2025 - 89th Regular

• Filed: 2/19/25

Caption

Relating to requiring debt collectors to provide certain disclosures to consumers.

Impact

The bill's implications for state laws are significant, as it seeks to standardize the information that debt collectors must provide to consumers across Texas. By requiring debt collectors to include a summary of consumer rights and the possibility of settlement agreements, the bill aims to create a more transparent debt collection process. Notably, the attorney general will also have resources available online to assist consumers in understanding their rights, enhancing the informative aspect of the legislation.

Summary

House Bill 3002 aims to enhance consumer protections in the realm of debt collection by mandating that debt collectors provide specific disclosures during their communications with consumers. The bill amends Chapter 392 of the Finance Code by adding a new subchapter that outlines requirements for written and electronic communications from debt collectors, including the need to inform consumers of their rights under the Fair Debt Collection Practices Act and state laws. This initiative seeks to improve consumer awareness and empower individuals when dealing with debt collectors.

Contention

Debate around HB 3002 may center on concerns involving the burden it places on debt collectors versus the necessity of increasing consumer awareness. While advocates argue that proper disclosures can help protect vulnerable consumers from aggressive collection practices, critics may contend that such requirements can lead to increased operational costs for debt collectors, potentially impacting their ability to recover debts. The balance between consumer protections and the practical realities of debt collection may be a focal point in discussions as the bill progresses.

Texas Constitutional Statutes Affected

Finance Code

• Chapter 392. Debt Collection
  • Section: New Section