By: Giddings H.B. No. 1854
A BILL TO BE ENTITLED
AN ACT
relating to requiring debt collectors to provide a copy of a
dishonored check to certain consumers; providing a civil penalty.
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. DUTY OF DEBT COLLECTOR TO PROVIDE COPY
OF DISHONORED CHECK
Sec. 397.001. DEFINITIONS. In this chapter:
(1) "Consumer" means an individual who has a consumer
debt.
(2) "Consumer debt" means an obligation, or an alleged
obligation, primarily for personal, family, or household purposes
and arising from a transaction or alleged transaction.
(3) "Debt collection" means an action, conduct, or
practice in collecting, or in soliciting for collection, consumer
debts that are due or alleged to be due a creditor.
(4) "Debt collector" means a person who directly or
indirectly engages in debt collection.
(5) "Substitute check" has the meaning assigned by 12
U.S.C. Section 5002.
Sec. 397.002. DUTY TO PROVIDE COPY OF DISHONORED CHECK. A
debt collector who contacts a consumer about a consumer debt
resulting from the consumer's alleged issuance of a dishonored
check shall, on the consumer's request, provide to the consumer a
photocopy of the check or substitute check involved in the
transaction not later than the 10th day after the date of the
request.
Sec. 397.003. CIVIL PENALTY. A debt collector who fails to
provide a copy of a check or substitute check as required by Section
397.002 is liable to the state for a civil penalty of up to $1,000
for each violation. The attorney general may sue to collect the
penalty.
Sec. 397.004. RECOVERY OF EXPENSES. The attorney general
may recover reasonable expenses incurred in obtaining a civil
penalty under Section 397.003, including court costs, reasonable
attorney's fees, investigative costs, witness fees, and deposition
expenses.
SECTION 2. This Act applies only to an action by a debt
collector to collect a consumer debt incurred on or after September
1, 2005. An action by a debt collector to collect a consumer debt
incurred before September 1, 2005, is covered by the law as it
existed immediately before the effective date of this Act, and the
former law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2005.