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A BILL TO BE ENTITLED
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AN ACT
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relating to a consumer debt owed by certain military personnel |
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called to active duty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 392, Finance Code, is amended by adding |
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Subchapter F to read as follows: |
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SUBCHAPTER F. DEFERRED COLLECTION OF CONSUMER DEBT |
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Sec. 392.501. DEFERRED COLLECTION OF DEBT OWED BY CERTAIN |
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MILITARY PERSONNEL CALLED TO ACTIVE DUTY. (a) An individual is |
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entitled to defer collection of a consumer debt or abate a suit to |
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collect a consumer debt if the individual: |
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(1) is a member of: |
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(A) the state military forces, as defined by |
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Section 431.001, Government Code; or |
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(B) a reserve component of the armed forces of |
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the United States; |
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(2) is ordered to active duty for a period of 30 days |
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or more; |
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(3) incurred the obligation before the date the |
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individual was ordered to active duty; and |
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(4) because of the individual's military service, is |
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earning less income than on the date the debt was incurred. |
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(b) To obtain a deferral, an individual must file with the |
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creditor: |
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(1) an affidavit stating the facts required to be |
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established by Subsection (a); |
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(2) a copy of a valid military identification card; |
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and |
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(3) a copy of the orders calling the individual to |
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active duty. |
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(c) After receiving the affidavit and other documents |
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required for the deferral under Subsection (b), a creditor shall |
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cease any collection efforts and may not resume those efforts or |
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file suit to collect the consumer debt until the 181st day after the |
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date the individual is no longer on active duty. |
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(d) To obtain an abatement of a pending suit to collect a |
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consumer debt of an individual, an affidavit of the individual or |
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any spouse, parent, sibling, or adult child of the individual |
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stating the facts required to be established by Subsection (a) and |
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the documents described by Subsections (b)(2) and (3) must be filed |
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in the court in which the suit is pending. If no controverting |
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affidavit is filed by the creditor or if, after a hearing, the court |
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finds the individual is entitled to the deferral, the court shall |
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abate the suit until the 181st day after the date the individual no |
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longer is on active duty. The clerk of the court shall deliver a |
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copy of the order abating the suit to the creditor. |
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(e) After the date the creditor receives the documentation |
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necessary for deferral under Subsection (b) or after the date the |
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court abates a suit filed under Subsection (d), as applicable, an |
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individual entitled to receive a deferral under this section shall |
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not: |
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(1) be considered to be in default of the obligation |
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and be made subject to: |
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(A) accrual of interest on any portion of the |
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obligation; or |
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(B) a demand for payment of or acceleration of |
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the remaining payments of the obligation; or |
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(2) be penalized in any other manner by the creditor |
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because of the deferral. |
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(f) Notwithstanding the other provisions of this section, |
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if a married individual who qualifies for a deferral or abatement of |
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collection of debt as provided by this section dies, the deferral or |
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abatement continues in effect until the earlier of: |
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(1) the 181st day after the date of the individual's |
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death; or |
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(2) the date the surviving spouse of the individual |
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remarries. |
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Sec. 392.502. EXERCISE OF RIGHTS UNDER SUBCHAPTER NOT TO |
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AFFECT CERTAIN FUTURE TRANSACTIONS. Receipt by an individual of a |
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deferral or abatement of collection of a consumer debt as provided |
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by this subchapter shall not provide the sole basis for: |
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(1) a denial or revocation of an extension of credit by |
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a creditor or other person; |
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(2) a change by a creditor in the terms of an existing |
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credit arrangement; |
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(3) a refusal by a creditor to extend future credit to |
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the individual in substantially the amount or on substantially the |
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terms requested; |
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(4) an adverse report relating to the creditworthiness |
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of the individual by or to a credit bureau; or |
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(5) an annotation in the individual's file by a credit |
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bureau identifying the individual as a member of the state military |
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forces or a reserve component of the armed forces of the United |
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States. |
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Sec. 392.503. WAIVER OF RIGHT VOID. A provision of a |
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contract or other agreement that purports to be a waiver by an |
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individual of any right provided by this subchapter is contrary to |
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public policy and void. |
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SECTION 2. Subchapter F, Chapter 392, Finance Code, as |
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added by this Act, applies only to a member of the state military |
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forces or a reserve component of the armed forces of the United |
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States who is ordered to report for or is serving on active duty on |
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or after the effective date of this Act. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |