Texas recently added to governmental efforts to address perceived issues concerning timebarred debt by enacting into law a provision that precludes a “debt buyer” from commencing an action or initiating an arbitration against a consumer to collect a consumer debt after the expiration of the applicable Texas statute of limitations period. See H.B. No. 996. The statute also makes clear that there can be no revival of the debt caused by any activity on the consumer debt, including reaffirmation. The statute does not preclude attempts to collect debt past the statute of limitations entirely, however, although it does have a mandatory disclosure scheme in which the disclosure provision to be used is dependent upon whether information about the debt is being furnished, or can be furnished in compliance with the FCRA’s limited seven-year reporting period from date of first delinquency. The overwhelming support for the bill is notable. The Senate passed the bill 31-0 and the House 133-7. The statute takes effect September 1, 2019.
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Texas Enacts New Consumer Finance Laws
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