79R1398 ATP-D
By: Hopson H.B. No. 3052
A BILL TO BE ENTITLED
AN ACT
relating to the enforcement of a buyer's obligation under a retail
installment transaction; providing a criminal penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 345.060(a), Finance Code, is amended to
read as follows:
(a) A retail installment contract may provide that if an
installment remains unpaid after [the 10th day after] the date of
maturity of the installment the retail seller may collect:
(1) a delinquency charge that is not more than five
percent of an installment or $5, whichever is less; or
(2) interest on the amount of the installment accruing
after the maturity of the installment at a rate that does not exceed
the maximum rate authorized for the contract.
SECTION 2. Section 345.061, Finance Code, is amended to
read as follows:
Sec. 345.061. CHARGES FOR COLLECTING DEBT. A retail
installment contract may provide for the payment of:
(1) an attorney's reasonable fees if the contract is
referred for collection to an attorney who is not a salaried
employee of the holder; [and]
(2) court costs and disbursements; and
(3) a fee if the property sold under the contract is
repossessed.
SECTION 3. Section 345.105, Finance Code, is amended to
read as follows:
Sec. 345.105. CHARGES FOR COLLECTION OF PAYMENT OF
AGREEMENT. A retail charge agreement may provide for the payment
of:
(1) an attorney's reasonable fee if the agreement is
referred for collection to an attorney who is not a salaried
employee of the holder; [and]
(2) court costs and disbursements; and
(3) a fee if the property sold under the agreement is
repossessed.
SECTION 4. Sections 345.157(a) and (e), Finance Code, are
amended to read as follows:
(a) A retail charge agreement that implements the market
competitive rate ceiling may provide for the payment of:
(1) a delinquency charge on each installment that is
in default [for a period that is longer than 21 days];
(2) an attorney's reasonable fee if the agreement is
referred for collection to an attorney who is not a salaried
employee of the holder; [and]
(3) court costs and disbursements; and
(4) a fee if the property sold under the agreement is
repossessed.
(e) A customer's monthly statement must contain the
following notice printed or typed in at least 10-point type that is
boldfaced, capitalized, underlined, or otherwise conspicuously set
out from the surrounding written material: "A DELINQUENCY CHARGE
OF $15 MAY BE ASSESSED FOR A PAYMENT THAT IS IN DEFAULT FOR A PERIOD
OF ONE OR MORE DAYS [THAT IS LONGER THAN 21 DAYS]."
SECTION 5. Subchapter H, Chapter 345, Finance Code, is
amended by adding Section 345.358 to read as follows:
Sec. 345.358. OFFENSE OF AVOIDING PAYMENT FOR GOODS. (a) A
person commits an offense if, with intent to avoid payment for goods
sold under a retail installment contract or a retail charge
agreement, the person intentionally or knowingly:
(1) secures the goods by deception, threat, or false
token; or
(2) secures the goods by agreeing to provide payment
as provided by the retail installment contract or the retail charge
agreement and, after the goods are delivered, fails to make payment
after receiving notice demanding payment.
(b) For purposes of this section, a person's intent to avoid
payment is presumed if the person fails to make payment or return
the property sold under a retail installment contract or retail
charge agreement before the sixth day after receiving notice
demanding payment.
(c) For purposes of Subsections (a)(2) and (b), notice must
be in writing, sent by registered or certified mail with return
receipt requested or by telegram with report of delivery requested,
and addressed to the actor at the address shown on the retail
installment contract or the retail charge agreement.
(d) If written notice is given in accordance with Subsection
(c), it is presumed that the notice was received not later than the
fifth day after the notice was sent.
(e) An offense under this section is:
(1) a Class C misdemeanor if the value of the property
for which payment is avoided is less than $20;
(2) a Class B misdemeanor if the value of the property
for which payment is avoided is $20 or more but less than $500;
(3) a Class A misdemeanor if the value of the property
for which payment is avoided is $500 or more but less than $1,500;
(4) a state jail felony if the value of the property
for which payment is avoided is $1,500 or more but less than
$20,000; or
(5) a felony of the third degree if the value of the
property for which payment is avoided is $20,000 or more.
SECTION 6. The changes in law made by this Act to Sections
345.060, 345.061, 345.105, and 345.157, Finance Code, apply only to
a retail installment contract or retail charge agreement entered
into on or after September 1, 2005. A contract or agreement entered
into before September 1, 2005, is governed by the law as it existed
on the date the contract or agreement was entered into, and the
former law is continued in effect for that purpose.
SECTION 7. This Act takes effect September 1, 2005.