By: Harris, C. S.B. No. 400
73R3272 LJD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of debt collectors.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 547, Acts of the 63rd Legislature,
1-5 Regular Session, 1973 (Article 5069-11.01 et seq.), is amended by
1-6 adding Sections 7A and 7B to read as follows:
1-7 Sec. 7A. CORRECTION OF DEBT COLLECTOR'S FILES. (a) If an
1-8 individual disputes the accuracy of an item in a debt collector's
1-9 file on the individual, the individual may give notice of the
1-10 inaccuracy in writing to the debt collector. The debt collector
1-11 shall provide forms for the notice and shall assist an individual
1-12 in preparing the notice when requested.
1-13 (b) Within 15 days after the date on which a notice of
1-14 inaccuracy is received, the debt collector shall send a written
1-15 statement to the individual in which the debt collector shall deny
1-16 the inaccuracy, admit the inaccuracy, or state that it has not had
1-17 sufficient time to complete its investigation.
1-18 (c) If the debt collector admits that the item is
1-19 inaccurate, it shall immediately correct the item in its file and
1-20 shall immediately send to each person who has previously received a
1-21 report containing the inaccurate information notice of the
1-22 inaccuracy and a copy of the accurate report.
1-23 (d) If the debt collector states that it has not had
1-24 sufficient time to complete its investigation, it shall immediately
2-1 change the item in its file as requested by the individual, shall
2-2 immediately send to each person who previously received the report
2-3 containing the information a notice that is equivalent to a notice
2-4 under Subsection (c) of this section and a copy of the changed
2-5 report, and shall immediately cease collection efforts if the item
2-6 involves a debt. When the debt collector completes its
2-7 investigation and determines whether the item is accurate or
2-8 inaccurate, it shall inform the individual of its determination.
2-9 If the debt collector determines that the information was
2-10 accurate, it may again report that information and may resume its
2-11 collection efforts.
2-12 Sec. 7B. BOND REQUIRED. (a) A person who accesses or
2-13 provides information for updating computerized files maintained by
2-14 a consumer reporting agency may not engage in debt collection
2-15 unless the person has obtained a surety bond issued by a surety
2-16 company authorized to do business in this state as required by this
2-17 section. A copy of the bond must be filed with the secretary of
2-18 state.
2-19 (b) The surety bond must be in favor of:
2-20 (1) any person who is damaged by a violation of this
2-21 Act; and
2-22 (2) the state, for the benefit of any person who is
2-23 damaged by a violation of this Act.
2-24 (c) A person claiming against the bond for a violation of
2-25 this Act may maintain an action against the debt collector and
2-26 against the surety. The aggregate liability of the surety to all
2-27 persons damaged by a violation of this Act may not exceed the
3-1 amount of the surety bond.
3-2 (d) The bond must be in the amount of $10,000.
3-3 (e) For purposes of this section, "consumer reporting
3-4 agency" has the meaning assigned by Section 603(f), Fair Credit
3-5 Reporting Act (15 U.S.C. Section 1681a(f)).
3-6 SECTION 2. This Act takes effect September 1, 1993.
3-7 SECTION 3. The importance of this legislation and the
3-8 crowded condition of the calendars in both houses create an
3-9 emergency and an imperative public necessity that the
3-10 constitutional rule requiring bills to be read on three several
3-11 days in each house be suspended, and this rule is hereby suspended.