Bill Text: TX HB953 | 2011-2012 | 82nd Legislature | Introduced

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Bill Title: Relating to consumer debt owed by certain military servicemembers.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-02-28 - Referred to Pensions, Investments & Financial Services [HB953 Detail]

Download: Texas-2011-HB953-Introduced.html

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82R5892 CLG-D
By: Lozano H.B. No. 953

A BILL TO BE ENTITLED
AN ACT
relating to consumer debt owed by certain military servicemembers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 5, Finance Code, is amended by adding
Chapter 397 to read as follows:
CHAPTER 397. DEFERRED COLLECTION OF CONSUMER DEBT OF CERTAIN
MILITARY SERVICEMEMBERS
Sec. 397.001. DEFINITIONS. In this chapter:
(1) "Combat zone" means an area that has been
designated as a combat zone by the President of the United States.
(2) "Consumer" means an individual who has a consumer
debt.
(3) "Consumer debt" means an obligation primarily for
personal, family, or household purposes and arising from a
transaction.
(4) "Consumer reporting agency" has the meaning
assigned by Section 20.01, Business & Commerce Code.
(5) "Creditor" means a party, other than a consumer,
to a transaction involving one or more consumers.
(6) "Military servicemember" means a member of:
(A) the armed forces of the United States;
(B) the Texas National Guard or the National
Guard of another state; or
(C) a reserve component of the armed forces of
the United States.
Sec. 397.002. APPLICABILITY OF CHAPTER. This chapter
applies only to a military servicemember who is on federal active
duty or is called to federal active duty.
Sec. 397.003. DEFERRED COLLECTION OR ABATEMENT OF CONSUMER
DEBT OWED BY MILITARY SERVICEMEMBER WOUNDED IN COMBAT ZONE. (a) A
military servicemember who incurs a wound or other injury while
serving in a combat zone and is hospitalized for treatment of the
wound or injury for 21 or more consecutive days is entitled to defer
collection of or abate a suit to collect a consumer debt that the
servicemember incurred before the date the servicemember was
wounded.
(b) To obtain a deferral under this section, a servicemember
must file with the creditor:
(1) an affidavit stating the facts required to be
established by Subsection (a);
(2) a copy of a valid military identification card;
(3) a copy of the orders calling the servicemember to
active duty in a combat zone; and
(4) a letter from an attending physician stating that
the servicemember was wounded or injured while serving in a combat
zone and has been hospitalized for 21 or more consecutive days for
treatment of the wound or injury.
(c) After receiving the affidavit and other documents
required for the deferral under Subsection (b), a creditor shall
cease any collection efforts and may not resume those efforts or
file suit to collect the consumer debt until:
(1) if the servicemember does not have to undergo
retraining for military or nonmilitary employment because of the
servicemember's wounds or injury, the earlier of:
(A) the first anniversary of the date the
servicemember is granted a medical release to return to active duty
or nonmilitary employment; or
(B) the date the servicemember is dishonorably
discharged from military service; or
(2) if the servicemember has to undergo retraining for
military or nonmilitary employment because of the servicemember's
wounds or injury, the earlier of:
(A) the first anniversary of the date the
servicemember completes the retraining; or
(B) the date the servicemember is dishonorably
discharged from military service.
(d) To obtain an abatement of a pending suit to collect a
consumer debt of a servicemember under this section, an affidavit
of the servicemember or any spouse, parent, sibling, or adult child
of the servicemember stating the facts required to be established
by Subsection (a) and the documents described by Subsections
(b)(2), (3), and (4) must be filed in the court in which the suit is
pending. If no controverting affidavit is filed by the creditor or
if, after a hearing, the court finds the servicemember is entitled
to the deferral, the court shall abate the suit for the same period
that would have applied to the servicemember under Subsection (c).
The clerk of the court shall deliver a copy of the order abating the
suit to the creditor.
(e) After the date the creditor receives the documentation
necessary for deferral under Subsection (b) or after the date the
court abates a suit filed under Subsection (d), as applicable, a
servicemember entitled to receive a deferral under this section may
not:
(1) be considered to be in default of the obligation
and be made subject to:
(A) accrual of interest on any portion of the
obligation; or
(B) a demand for payment of or acceleration of
the remaining payments of the obligation; or
(2) be penalized in any other manner by the creditor
because of the deferral.
(f) Notwithstanding the other provisions of this section,
if a married servicemember who qualifies for a deferral or
abatement of collection of debt as provided by this section dies,
the deferral or abatement continues in effect until the earlier of:
(1) the first anniversary of the date of the
servicemember's death; or
(2) the date the surviving spouse of the servicemember
remarries.
Sec. 397.004. EXERCISE OF RIGHTS UNDER CHAPTER NOT TO
AFFECT CERTAIN FUTURE TRANSACTIONS. Receipt by a servicemember of
a deferral or abatement of collection of a consumer debt under this
chapter may not provide the sole basis for:
(1) a denial or revocation of an extension of credit by
a creditor or other person;
(2) a change by a creditor in the terms of an existing
credit arrangement;
(3) a refusal by a creditor to extend future credit to
the servicemember in substantially the amount or on substantially
the terms requested;
(4) an adverse report relating to the creditworthiness
of the servicemember or the servicemember's spouse by or to a
consumer reporting agency; or
(5) an annotation in the servicemember's file by a
consumer reporting agency identifying the servicemember as a member
of:
(A) the armed forces of the United States;
(B) the Texas National Guard or the National
Guard of another state; or
(C) a reserve component of the armed forces of
the United States.
Sec. 397.005. WAIVER OF RIGHT VOID. A provision of an
agreement that purports to be a waiver by an individual of any right
provided by this chapter is contrary to public policy and void.
Sec. 397.006. CIVIL REMEDIES. (a) A person may sue for:
(1) injunctive relief to prevent or restrain a
violation of this chapter; and
(2) actual damages sustained as a result of a
violation of this chapter.
(b) A person who successfully maintains an action under
Subsection (a) is entitled to recover 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 chapter, the
attorney general may bring an action in the name of the state
against the person to restrain or enjoin the person from violating
this chapter.
SECTION 2. Chapter 397, Finance Code, as added by this Act,
applies only to a member of the armed forces of the United States,
the Texas National Guard or the National Guard of another state, or
a reserve component of the armed forces of the United States who is
ordered to report for or is serving on federal active duty on or
after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2011.