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79R8043 HLT-D


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 provide to the consumer, at the time of the initial 
contact, a photocopy of the check or substitute check involved in 
the transaction.
	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 day the failure continues.  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.                           


COMMITTEE AMENDMENT NO. 1
	Amend H.B. 1854 as follows:                                                    
	(1)  On page 2, line 1, between "shall" and "provide", insert 
", on the consumer's request,".
	(2)  On page 2, lines 1 and 2, strike ", at the time of the 
initial contact,".
	(3)  On page 2, line 3, between "transaction" and the period, 
insert "not later than the 10th day after the date of the request".
	(4)  On page 2, line 7, strike "each day the failure 
continues" and substitute "each violation".

                                                                        Taylor