79R5512 CLG-F
By: Shapleigh S.B. No. 1479
A BILL TO BE ENTITLED
AN ACT
relating to deferred presentment transactions of certain military
personnel or their spouses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 342, Finance Code, is amended by adding
Subchapter M to read as follows:
SUBCHAPTER M. DEFERRED PRESENTMENT TRANSACTIONS
Sec. 342.601. DEFINITIONS. In this subchapter:
(1) "Lender" means a lender licensed under this
chapter.
(2) "Member of the United States military" means:
(A) a member of the armed forces of the United
States; or
(B) a member of the Texas National Guard who is
called to federal active duty.
Sec. 342.602. DISCLOSURES TO MILITARY BORROWERS. Before
engaging in a deferred presentment transaction, a lender shall
provide to a customer who is a member of the United States military
or the member's spouse a written statement that clearly and
conspicuously states that:
(1) the lender is prohibited by law from:
(A) garnishing the wages of any borrower,
including a borrower who is a member of the United States military;
(B) conducting any collection activity against a
borrower who is:
(i) a member of the armed forces of the
United States who is deployed to combat or a combat support posting,
for the duration of the posting;
(ii) a member of the Texas National Guard
who is called to federal active duty, for the duration of the duty;
(iii) the spouse of a person described by
Paragraph (i), for the duration of the posting; or
(iv) the spouse of a person described by
Paragraph (ii), for the duration of the duty; or
(C) from contacting the employer of a member of
the United States military about a deferred presentment debt of the
member or the member's spouse;
(2) the lender shall honor the terms of a repayment
agreement entered into with a member of the United States military
or the member's spouse, including a repayment agreement negotiated
through military counselors or third-party credit counselors; and
(3) the lender shall honor any statement made by a
commanding officer of a member of the United States military
declaring any location where deferred presentment transaction
business is to be conducted by the lender to be a place at which a
member of the United States military or the member's spouse is
prohibited from transacting business.
Sec. 342.603. PROHIBITED PRACTICES. A lender may not
contact the employer of a member of the United States military about
a deferred presentment debt of the member or the member's spouse.
Sec. 342.604. MILITARY BORROWER. (a) A lender may not
engage in collection activity against a borrower who is:
(1) a member of the armed forces of the United States
who is deployed to combat or a combat support posting, for the
duration of the posting;
(2) a member of the Texas National Guard who is called
to federal active duty, for the duration of the duty;
(3) the spouse of a person described by Subdivision
(1), for the duration of the posting; or
(4) the spouse of a person described by Subdivision
(2), for the duration of the duty.
(b) A lender may not garnish the wages of a borrower who is a
member of the United States military or the member's spouse.
Sec. 342.605. REPAYMENT AGREEMENT. With respect to a
deferred presentment transaction, a lender shall honor a repayment
agreement entered into with a borrower who is a member of the United
States military or the member's spouse, including a repayment
agreement negotiated through a military counselor or a third-party
credit counselor.
SECTION 2. This Act takes effect September 1, 2005.