A provider may not do a list of prohibited acts with consumers, including buying consumer debt, charging fees in certain negotiable instruments, lending to the consumer, taking consumer security interests, and using unfair or deceptive practices.
Sec. 394.212. PROHIBITED ACTS AND PRACTICES. (a) A provider may not: (1) purchase a debt or obligation of a consumer; (2) receive or charge a fee in the form of a promissory note or other negotiable instrument other than a check or a draft; (3) lend money or provide credit to the consumer; (4) obtain a mortgage or other security interest in property owned by a consumer; (5) engage in business with a for-profit business entity described by Section 394.204(c)(7) without prior consent of the commissioner, except that unless denied, consent is considered granted 30 days after the date the provider notifies the commissioner of the intent to engage in business with a for-profit business entity described by Section 394.204(c)(7); (6) offer, pay, or give a gift, bonus, premium, reward, or other compensation to a person for entering into a debt management services agreement; (7) represent that the provider is authorized or competent to furnish legal advice or perform legal services unless supervised by an attorney as required by State Bar of Texas rules; (8) use an unconscionable means to obtain a contract with a consumer; (9) engage in an unfair, deceptive, or unconscionable act or practice in connection with a service provided to a consumer; or (10) require or attempt to require payment of an amount that the provider states, discloses, or advertises to be a voluntary contribution from the consumer. (b) A provider does not have a claim: (1) for breach of contract against a consumer who cancels an agreement pursuant to this subchapter; or (2) in restitution with respect to an agreement that is void under this subchapter. (c) A provider may not include any of the following provisions in a disclosure related to debt management services or in a debt management services agreement: (1) a confession of judgment clause; (2) a waiver of the right to a jury trial, if applicable, in an action brought by or against a consumer; (3) an assignment of or order for payment of wages or other compensation for services; or (4) a waiver of a provision of this subchapter. Added by Acts 2005, 79th Leg., Ch. 336 (S.B. 1112), Sec. 1, eff. September 1, 2005. Amended by: Acts 2023, 88th Leg., R.S., Ch. 159 (S.B. 1371), Sec. 32, eff. September 1, 2023.