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