By: West S.B. No. 2167               A BILL TO BE ENTITLED   AN ACT   relating to the collection of consumer debt by debt buyers.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  This Act shall be known as the Fair Consumer Debt   Collection Act.          SECTION 2.  Title 5, Finance Code, is amended by adding   Chapter 397 to read as follows:   CHAPTER 397. COLLECTION OF CONSUMER DEBT BY DEBT BUYERS          Sec. 397.001.  DEFINITIONS. In this chapter:                (1)  "Charged-off debt" means a consumer debt that a   creditor has determined to be a loss or expense to the creditor   instead of an asset.                (2)  "Consumer," "consumer debt," and "creditor" have   the meanings assigned by Section 392.001.                (3)  "Debt buyer" means a person who purchases or   otherwise acquires a consumer debt from a creditor or other   subsequent owner of the consumer debt, regardless of whether the   person collects the consumer debt, hires a third party to collect   the consumer debt, or hires an attorney for collection litigation   in connection with the consumer debt. The term does not include:                      (A)  a person who acquires a charged-off debt   incidental to the purchase of a portfolio that predominantly   consists of consumer debt that has not been charged off; or                      (B)  a check services company that acquires the   right to collect on a paper or electronic negotiable instrument,   including an Automated Clearing House (ACH) authorization to debit   an account that has not been processed.                (4)  "Statute of limitations" means a law in this state   that prescribes the period during which a person may bring a cause   of action.          Sec. 397.002.  CONFLICT OF LAW. Unless otherwise expressly   provided, this chapter prevails to the extent of any conflict   between this chapter and any other law of this state.          Sec. 397.003.  LIMITATION ON INITIATION OF CONTACT WITH   CONSUMER. A debt buyer may not contact or attempt to contact a   consumer for purposes of debt collection if the debt buyer knows or   has reason to know that a cause of action for collection of the   consumer debt is barred by a statute of limitations.          Sec. 397.004.  INITIATION OF ACTION AGAINST OR ARBITRATION   WITH CONSUMER. (a) A debt buyer may not bring an action against,   initiate arbitration with, or commence any other legal proceeding   against a consumer to collect a consumer debt if the debt buyer   knows or has reason to know that a cause of action for collection of   the consumer debt is barred by a statute of limitations.          (b)  A cause of action by a debt buyer against a consumer for   collection of a consumer debt that is barred by a statute of   limitations may not be revived by the collection of payment on the   account of the consumer associated with the debt, an oral or written   reaffirmation of the consumer debt, or any other method.          Sec. 397.005.  CIVIL ACTION. (a) A debt buyer who violates   this chapter is liable to a person harmed by the violation for:                (1)  actual damages; and                (2)  reasonable attorney's fees and costs.          (b)  An action must be brought under this section not later   than the second anniversary of the date of the last event   constituting the alleged violation for which the action is brought.          SECTION 3.  The changes in law made by this Act apply only to   an action of a debt buyer to collect a consumer debt if the action   occurs on or after the effective date of this Act. An action of a   debt buyer to collect a consumer debt that occurs before the   effective date of this Act is governed by the law in effect   immediately before that date, and the former law is continued in   effect for that purpose.          SECTION 4.  This Act takes effect September 1, 2017.