This first volume of the Texas Consumer & Commercial Law Update will focus on some of the frequently asked questions we received in the last few months. We will also provide case alerts on issues that are making their way through the Texas court system, as well as legislation affecting financial institutions and other lenders in our state.

Texas Constitution vs. Home Equity Lending

One of the most hotly contested areas in Texas is the interplay between the Texas Constitution and the various statutes that affect home equity lending whether directly, indirectly or unintentionally.  By way of background, a lien cannot be placed against a homestead unless the Texas Constitution specifically grants an exception such as purchase money or taxes due on the property. Read more...

Does Tort Reform affect any aspect of banking or other financial operations?

Yes, to a limited extent.  HB 4 includes the passage of a settlement offer/demand procedure.  For cases filed after January 1, 2004, a defendant may give notice of intent to make a settlement offer and then do so.  (Note:  the Texas Civil Practice & Remedies Code and Texas Rules of Civil Procedure lay out the timing and details.)Read more...

Is there a statute in Texas that governs lenders collecting their own loans?

Yes.  The federal Fair Debt Collection Practices Act has long been criticized for excluding lenders who collect their own debt.  The Texas Legislature sought to fill this hole with the Texas Debt Collection Practices Act (the Act).  The Act restricts itself to covering certain relatively narrow actions contrary to the federal catch-all approach.  Read more...

Your questions answered

Are there any rules regulating transactions in which the consumer is not a native English speaker?

What about the effect of HB 1547?

If the lender makes a simple typographical error, is it necessary to completely re-do the loan documents to comply with the cure provision in the Texas Constitution?

If it appears that the debtor may have committed fraud, what recourse does a lender have?

 

Read the full update
ACORN v. Finance Commission of Texas
 
HB 1547 | Analysis
HB 4 | Impact Statement
 
Home Equity Lending
Tort Reform
 
Coming soon...
CAFA Law Blog presents "The CAFA Revolution, Year 1 -- Confusion on the Battlefield."

Hurricane Law Blog
 
Arbitration Update: Bogus Arbitration Scams
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