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CHAPTER 394. DEBTOR ASSISTANCE

FINANCE CODE

TITLE 5. PROTECTION OF CONSUMERS OF FINANCIAL SERVICES

CHAPTER 394. DEBTOR ASSISTANCE

SUBCHAPTER A. DEBT COUNSELING AND EDUCATION

Sec. 394.001. DUTIES OF COMMISSIONER. The consumer credit

commissioner shall provide advice and assistance to:

(1) encourage the establishment and operation of voluntary

nonprofit debt-counseling services for residents of this state;

and

(2) coordinate, encourage, and aid public and private agencies,

organizations and groups, and consumer credit institutions in the

development and operation of voluntary education programs to

promote the prudent and beneficial use of consumer credit by

residents of this state.

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER C. CONSUMER DEBT MANAGEMENT SERVICES

Sec. 394.201. PURPOSE; CONSTRUCTION. (a) The purpose of this

subchapter is to protect consumers who contract for services with

debt management services providers.

(b) This subchapter shall be liberally construed to accomplish

its purpose.

Added by Acts 2005, 79th Leg., Ch.

336, Sec. 1, eff. September 1, 2005.

Sec. 394.202. DEFINITIONS. In this subchapter:

(1) "Advertising" means information about a provider or about

the provider's debt management services, communicated in writing

or orally to an individual consumer or the public by telephone,

television, Internet, radio, or other electronic medium, or by

written material sent by mail, posted publicly, or posted at the

provider's business location.

(2) "Certified counselor" means an individual who:

(A) is certified as a debt management counselor by an

independent accreditation organization; or

(B) if the individual has been employed for less than 12 months,

is in the process of being certified as a debt management

counselor by an independent accreditation organization.

(3) "Commissioner" means the consumer credit commissioner.

(4) "Consumer" means an individual who resides in this state and

seeks a debt management service or enters a debt management

service agreement.

(5) "Creditor" means a person to whom a person owes money.

(6) "Debt management service" means:

(A) the receiving of money from a consumer for the purpose of

distributing that money to or among one or more of the creditors

of the consumer in full or partial payment of the consumer's

obligations;

(B) arranging or assisting a consumer to arrange for the

distribution of one or more payments to or among one or more

creditors of the consumer in full or partial payment of the

consumer's obligations; or

(C) exercising control, directly or indirectly, or arranging for

the exercise of control over funds of a consumer for the purpose

of distributing payments to or among one or more creditors of the

consumer in full or partial payment of the consumer's

obligations.

(7) "Debt management service agreement" means a written

agreement between a provider and a consumer for the performance

of a debt management service.

(8) "Finance commission" means the Finance Commission of Texas.

(9) "Person" means an individual, partnership, corporation,

limited liability company, association, or organization.

(10) "Provider" means a person that provides or offers to

provide to a consumer in this state a debt management service.

(11) "Secured debt" means a debt for which a creditor has a

mortgage, lien, or security interest in collateral.

(12) "Trust account" means an account that is:

(A) established in a federally insured financial institution;

(B) separate from any account of the debt management service

provider;

(C) designated as a "trust account" or other appropriate

designation indicating that the money in the account is not money

of the provider or its officers, employees, or agents;

(D) unavailable to creditors of the provider; and

(E) used exclusively to hold money paid by consumers to the

provider for disbursement to creditors of the consumers and to

the provider for the disbursement of fees and contributions

earned and agreed to in advance.

(13) "Unsecured debt" means a debt for which a creditor does not

have collateral.

Added by Acts 2005, 79th Leg., Ch.

336, Sec. 1, eff. September 1, 2005.

Sec. 394.203. APPLICABILITY. (a) Except as otherwise provided

by this subchapter, this subchapter applies to a provider

regardless of whether the provider charges a fee or receives

consideration for a service.

(b) The business of providing debt management services is

conducted in this state if the debt management services provider

solicits or contracts with consumers located in this state.

(c) This subchapter does not apply to:

(1) an attorney licensed to practice in this state, unless the

attorney holds the attorney's self out to the public as a

provider or is employed, affiliated with, or otherwise working on

behalf of a provider;

(2) a title insurance or abstract company employee or agent, or

other person legally authorized to engage in escrow business in

the state, only while engaged in the escrow business;

(3) a judicial officer or person acting under a court order;

(4) a person who has legal authority under federal or state law

to act as a representative payee for a consumer, only to the

extent the person is paying bills or other debts on behalf of

that consumer;

(5) a person who pays bills or other debts owed by a consumer

and on behalf of a consumer, if the money used to make the

payments belongs exclusively to the consumer and the person does

not initiate any contact with individual creditors of the

consumer to compromise a debt, arrange a new payment schedule, or

otherwise change the terms of the debt; or

(6) a financial institution, as defined by Section 201.101.

(d) The following are not debt management services for purposes

of this subchapter:

(1) an extension of credit, including consolidation or refinance

of a loan; and

(2) bankruptcy services provided by an attorney licensed to

practice in this state.

(e) This subchapter applies to a person who seeks to evade its

applicability by any device, subterfuge, or pretense.

Added by Acts 2005, 79th Leg., Ch.

336, Sec. 1, eff. September 1, 2005.

Sec. 394.204. REGISTRATION. (a) A person, regardless of

whether located in this state, may not provide a debt management

service to a consumer in this state unless the person is

registered with the commissioner.

(b) Registration expires on December 31 of the year in which the

registration occurs and must be renewed annually.

(c) An application for an initial registration must be in a form

prescribed by the commissioner and accompanied by:

(1) the appropriate fees set by the finance commission in an

amount necessary to recover the costs of administering this

subchapter;

(2) the surety bond or insurance required by Section 394.206;

(3) the applicant's name, the applicant's principal business

address and telephone number, all other business addresses of the

applicant in this state, and the applicant's electronic mail

address and Internet website address;

(4) all names under which the applicant conducts business;

(5) the address of each location in this state at which the

applicant will provide debt management services, or if the

applicant will have no such location, a statement to that effect;

(6) the name and home address of each officer and director of

the applicant and each person that holds at least a 10 percent

ownership interest in the applicant;

(7) if the applicant is a nonprofit or tax exempt organization,

a detailed description of the ownership interest of each officer,

director, agent, or employee of the applicant, and any member of

the immediate family of an officer, director, agent, or employee

of the applicant, in a for-profit affiliate or subsidiary of the

applicant or in any other for-profit business entity that

provides services to the applicant or to a consumer in relation

to the applicant's debt management business; and

(8) any other information that the commissioner requires.

(d) An officer or employee of a person registered under this

subchapter is not required to be separately registered.

(e) Unless the commissioner notifies an applicant that a longer

period is necessary, the commissioner shall approve or deny an

initial registration not later than the 60th day after the date

on which the completed application, including all required

documents and payments, is filed. The commissioner shall inform

the applicant in writing of the reason for denial.

(f) A person may renew a registration by paying the appropriate

fee and completing all required documents.

(g) The finance commission by rule may establish procedures to

facilitate the registration and collection of fees under this

section, including rules staggering throughout the year the dates

on which fees are due.

(h) The commissioner may refuse an initial application if the

application contains errors or incomplete information. An

application is incomplete if it does not include all of the

information required by this section and Section 394.205.

(i) The commissioner may deny an initial application if:

(1) the applicant or any principal of the applicant has been

convicted of a crime or found civilly liable for an offense

involving moral turpitude, including forgery, embezzlement,

obtaining money under false pretenses, larceny, extortion,

conspiracy to defraud, or any other similar offense or violation;

(2) the registration of the applicant or any principal of the

applicant has been revoked or suspended in this state or another

state, unless the applicant provides information that the

commissioner finds sufficient to show that the grounds for the

previous revocation or suspension no longer exist and any problem

cited in the previous revocation has been corrected; or

(3) the commissioner, based on specific evidence, finds that the

applicant does not warrant the belief that the business will be

operated lawfully and fairly and within the provisions and

purposes of this subchapter.

(j) On written request, the applicant is entitled to a hearing,

pursuant to Chapter 2001, Government Code, on the question of the

applicant's qualifications for initial registration if the

commissioner has notified the applicant in writing that the

initial application has been denied. A request for a hearing may

not be made after the 30th day after the date the commissioner

mails a notice to the applicant stating that the application has

been denied and stating the reasons for the denial.

(k) In addition to the power to refuse an initial application as

specified in this section, the commissioner may suspend or revoke

a provider's registration after notice and hearing if the

commissioner finds that any of the following conditions are met:

(1) a fact or condition exists that if it had existed when the

provider applied for registration would have been grounds for

denying registration;

(2) a fact or condition exists that the commissioner was not

aware of when the provider applied for registration and would

have been grounds for denying registration;

(3) the provider violates this subchapter or rule or order of

the commissioner under this subchapter;

(4) the provider is insolvent;

(5) the provider refuses to permit the commissioner to make an

examination authorized by this subchapter;

(6) the provider fails to respond within a reasonable time and

in an appropriate manner to communications from the commissioner;

(7) the provider has failed to disburse money to creditors on

behalf of consumers within a reasonable time, normally 30 days;

(8) the commissioner determines that the provider's trust

account is not materially in balance with and reconciled to the

consumer's account; or

(9) the provider fails to warrant the belief that the business

will be operated lawfully and fairly and within the provisions

and purposes of this subchapter.

(l) The commissioner's order revoking a registration must

include appropriate provisions to transfer existing clients of

the provider to one or more registered providers to ensure the

continued servicing of the clients' accounts.

(m) The commissioner shall maintain a list of registered

providers and make the list available to interested persons and

to the public.

Added by Acts 2005, 79th Leg., Ch.

336, Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

48, Sec. 1, eff. September 1, 2007.

Sec. 394.205. RECORDS. (a) A provider shall keep and use

books, accounts, and other records that will enable the

commissioner to determine if the provider is complying with this

subchapter and maintain any other records as required by the

commissioner. The commissioner may examine the records at any

reasonable time. The records must be kept for at least three

years after the date of the last service on a consumer's debt

management plan.

(b) Each provider shall file a report with the commissioner at

each renewal of the provider's registration. The report must at

a minimum disclose in detail and under appropriate headings:

(1) the assets and liabilities of the provider at the beginning

and end of the period, if the provider is a nonprofit or tax

exempt organization;

(2) the total number of debt management plans the provider has

initiated on behalf of consumers in this state during that year;

and

(3) records of total and average fees charged to consumers,

including all voluntary contributions received from consumers.

(c) The reports must be verified by the oath or affirmation of

the owner, manager, president, chief executive officer, or

chairman of the board of directors of the provider.

(d) A provider shall file a blank copy of the agreement

described in Section 394.209 and blank copies of the written

information required in Section 394.208(a) with the commissioner

accompanying the initial registration and each renewal of

registration.

(e) The commissioner shall make the information provided under

this section available to interested parties and to the public.

Added by Acts 2005, 79th Leg., Ch.

336, Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

48, Sec. 2, eff. September 1, 2007.

Sec. 394.206. BOND; INSURANCE. (a) A provider shall, at the

time the provider files an initial or renewal registration

application with the commissioner, file:

(1) a surety bond; or

(2) evidence that the provider maintains an insurance policy in

a form approved by the commissioner.

(b) The bond or insurance must:

(1) run concurrently with the period of registration;

(2) be available to pay damages and penalties to consumers

directly harmed by a violation of this subchapter;

(3) be in favor of this state for the use of this state and the

use of a person who has a cause of action under this subchapter

against the provider;

(4) be in an amount equal to the average daily balance of the

provider's trust account serving Texas consumers over the

six-month period preceding the issuance of the bond, or in the

case of an initial application, in an amount determined by the

commissioner, but not less than $25,000 or more than $100,000;

(5) if an insurance policy:

(A) provide coverage for professional liability, employee

dishonesty, depositor's forgery, and computer fraud in an amount

not less than $100,000;

(B) be issued by a company rated at least "A-" or its equivalent

by a nationally recognized rating organization; and

(C) provide for 30 days advance written notice of termination of

the policy to be provided to the commissioner;

(6) be issued by a bonding, surety, or insurance company that is

authorized to do business in the state; and

(7) be conditioned on the provider and its agents complying with

all state and federal laws, including regulations, governing the

business of debt management services.

(c) In lieu of a bond or insurance, the finance commission by

rule may establish alternative financial requirements to provide

substantially equivalent protection to pay damages and penalties

to consumers directly harmed by a violation under this

subchapter.

(d) The commissioner may adjust the amount of the provider's

bond or insurance only when the provider applies for renewal of

registration and requests a review of the bond or insurance

amount.

Added by Acts 2005, 79th Leg., Ch.

336, Sec. 1, eff. September 1, 2005.

Sec. 394.207. ADVERTISING. A provider may not engage in false

or deceptive advertising.

Added by Acts 2005, 79th Leg., Ch.

336, Sec. 1, eff. September 1, 2005.

Sec. 394.208. REQUIRED ACTIONS BY PROVIDER. (a) A provider may

not enroll a consumer in a debt management plan unless, through

the services of a counselor certified by an independent

accreditation organization, the provider has:

(1) provided the consumer individualized counseling and

educational information that at a minimum addresses the topics of

managing household finances, managing credit and debt, and

budgeting;

(2) prepared an individualized financial analysis and an initial

debt management plan for the consumer's debts with specific

recommendations regarding actions the consumer should take;

(3) determined that the consumer has a reasonable ability to

make payments under the proposed debt management plan based on

the information provided by the consumer;

(4) a reasonable expectation, provided that the consumer has

provided accurate information to the provider, that each creditor

of the consumer listed as a participating creditor in the plan

will accept payment of the consumer's debts as provided in the

initial plan;

(5) prepared, for all creditors identified by the consumer or

identified through additional investigation by the provider, a

list, which must be provided to the consumer in a form the

consumer may keep, of the creditors that the provider reasonably

expects to participate in the plan; and

(6) provided a written document to the consumer in a form the

consumer may keep that clearly and conspicuously contains the

following statements:

(A) that debt management services are not suitable for all

consumers and that consumers may request information about other

ways, including bankruptcy, to deal with indebtedness;

(B) that if the provider is a nonprofit or tax-exempt

organization the provider cannot require donations or

contributions; and

(C) if applicable, that some of the provider's funding comes

from contributions from creditors who participate in debt

management plans, except that a provider may substitute for

"some" the actual percentage of creditor contributions it

received during the most recent reporting period.

(b) If the provider discusses its services with a consumer

primarily in a language other than English, the provider must

provide the debt management agreement in that language.

(c) A consumer must give at least 10 days' notice to the

provider to cancel a debt management services agreement. The

provider must cancel a debt management services agreement within

10 days after the date the provider receives the notice from the

consumer. The provider must continue making disbursements to the

consumer's creditors if money has been paid to the provider under

the agreement until the expiration of the 10-day period, unless

otherwise agreed in writing by the consumer and the provider.

(d) A provider may provide the information required by

Subsections (a)(2), (5), and (6) through its Internet website if

the provider:

(1) has complied with the federal Electronic Signatures in

Global and National Commerce Act (15 U.S.C. Section 7001 et

seq.);

(2) informs the consumer that, on electronic, telephonic, or

written request the provider will make available to the consumer

a paper copy or copies; and

(3) discloses on its Internet website:

(A) the provider's name and each name under which it does

business;

(B) the provider's principal business address and telephone

number; and

(C) the names of the provider's principal officers.

(e) A provider, including a provider that does business only or

principally through the Internet, shall maintain a telephone

system staffed at a level that reasonably permits a consumer to

access a counselor during ordinary business hours.

(f) A provider shall provide each consumer for whom it provides

debt management services a written report accounting for:

(1) the amount of money received from the consumer since the

last report;

(2) the amount and date of each disbursement made on the

consumer's behalf to each creditor listed in the agreement since

the last report;

(3) any amount deducted from amounts received from the consumer;

and

(4) any amount held in reserve.

(g) The provider shall provide the report under Subsection (f):

(1) at least once each calendar quarter; and

(2) not later than the 10th business day after the date of a

request by a consumer.

Added by Acts 2005, 79th Leg., Ch.

336, Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

48, Sec. 3, eff. September 1, 2007.

Sec. 394.209. WRITTEN DEBT MANAGEMENT SERVICES AGREEMENT. (a)

A debt management services provider may not prepare a debt

management services agreement before the provider has fully

complied with Sections 394.208(a) and (b).

(b) Each debt management services agreement must:

(1) be dated and signed by the consumer;

(2) include the name and address of the consumer and the name,

address, and telephone number of the provider;

(3) describe the services to be provided;

(4) state all fees, individually itemized, to be paid by the

consumer;

(5) list in the agreement or accompanying document, to the

extent the information is available to the provider at the time

the agreement is executed, each participating creditor of the

consumer to which payments will be made and, based on information

provided by the consumer, the amount owed to each creditor and

the schedule of payments the consumer will be required to make to

the creditor, including the amount and date on which each payment

will be due;

(6) state the existence of a surety bond or insurance for

consumer claims;

(7) state that establishment of a debt management plan may

impact the consumer's credit rating and credit score either

favorably or unfavorably, depending on creditor policies and the

consumer's payment history before and during participation in the

debt management plan; and

(8) state that either party may cancel the agreement without

penalty at any time on 10 days' notice and that a consumer who

cancels an agreement is entitled to a refund of all money that

the consumer has paid to the provider that has not been

disbursed.

(c) A debt management services agreement may contain a voluntary

consumer arbitration provision or a voluntary mediation

provision.

(d) A provider may deliver the debt management services

agreement through the Internet if the provider:

(1) has complied with the federal Electronic Signatures in

Global and National Commerce Act (15 U.S.C. Section 7001 et

seq.);

(2) sends the consumer a paper copy of the agreement not later

than the seventh day after the date of a request by a consumer to

do so; and

(3) discloses on a prominent page of its Internet website:

(A) the provider's name and each name under which it does

business;

(B) the provider's principal business address and telephone

number; and

(C) the names of the provider's principal officers.

(e) If the provider discusses its services or negotiates with a

consumer primarily in a language other than English, the provider

may not begin performance of a debt management plan until the

provider and consumer sign a copy of the written agreement,

provided by the debt management services provider, in that

language and a copy is made available to the consumer.

Added by Acts 2005, 79th Leg., Ch.

336, Sec. 1, eff. September 1, 2005.

Sec. 394.210. PERMITTED FEES. (a) With respect to the

provision of a debt management plan service, a provider may not

impose a fee or other charge on a consumer, or receive payment

from a consumer or other person on behalf of a consumer, except

as allowed under this section.

(b) For the purposes of this section, fees or charges include

both voluntary contributions and any other fees charged to or

collected from a consumer or on behalf of the consumer.

(c) Any fee charged by a provider must be fair and reasonable

given the value of the products and services provided to the

consumer, including consideration of the amount subject to debt

management and the number of anticipated payments. A fee or a

portion of a fee that is specifically related to a debt

management plan may not be charged until the provider has

complied with Sections 394.208(a) and (b) and 394.209.

(d) A provider may charge a monthly maintenance fee if the fee

is fair and reasonable.

(e) A fee charged for a service other than a debt management

service must be fair and reasonable.

(f) The finance commission may establish maximum fair and

reasonable fees under this section.

Added by Acts 2005, 79th Leg., Ch.

336, Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

48, Sec. 4, eff. September 1, 2007.

Sec. 394.211. TRUST ACCOUNT. (a) A provider must use a trust

account for the management of all money paid by or on behalf of a

consumer for disbursement to the consumer's creditor. A provider

may not commingle the money in a trust account established for

the benefit of consumers with any operating funds of the

provider. A provider shall exercise due care to appropriately

manage the funds in the trust account.

(b) The trust account must at all times be materially in balance

with and reconciled to the consumers' accounts. Failure to

maintain that balance is cause for a summary suspension of

registration under Section 394.204.

(c) If a trust account does not contain sufficient money to

cover the aggregate consumer balances, and the provider has not

corrected the deficiency within 48 hours of discovery, the

provider shall notify the commissioner by telephone, facsimile,

electronic mail, or other method approved by the commissioner,

and provide written notice including a description of the

remedial action taken.

Added by Acts 2005, 79th Leg., Ch.

336, Sec. 1, eff. September 1, 2005.

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 an entity described by Section

394.204(c)(3) 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 an organization described by Section

394.204(c)(3);

(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, Sec. 1, eff. September 1, 2005.

Sec. 394.213. DUTIES OF PROPER MANAGEMENT. A provider has a

duty to a consumer who receives debt management services from the

provider to ensure that client money is managed properly at all

times.

Added by Acts 2005, 79th Leg., Ch.

336, Sec. 1, eff. September 1, 2005.

Sec. 394.214. ADDITIONAL ENFORCEMENT POWERS. (a) The finance

commission may adopt rules to carry out this subchapter.

(b) The commissioner may:

(1) investigate the activities of a person subject to this

subchapter to determine compliance with this subchapter,

including examination of the books, accounts, and records of a

provider; and

(2) require or permit a person to file a statement under oath

and otherwise subject to the penalties of perjury, as to all the

facts and circumstances of the matter to be investigated.

(c) Failure to comply with an investigation under Subsection (b)

is grounds for issuance of a cease and desist order.

(d) The commissioner may receive and act on complaints, take

action to obtain voluntary compliance with this subchapter, and

refer cases to the attorney general for prosecution.

(e) The commissioner may enforce this subchapter and rules

adopted under this subchapter by:

(1) ordering the violator to cease and desist from the violation

and any similar violations;

(2) ordering the violator to take affirmative action to correct

the violation, including the restitution of money or property to

a person aggrieved by the violation;

(3) imposing an administrative penalty not to exceed $1,000 for

each violation as provided by Subchapter F, Chapter 14; or

(4) rejecting an initial application or revoking or suspending a

registration as provided by Section 394.204.

(f) In determining the amount of an administrative penalty to be

imposed under this section, the commissioner shall consider the

seriousness of the violation, the good faith of the violator, the

violator's history of previous violations, the deleterious effect

of the violation on the public, the assets of the violator, and

any other factors the commissioner considers relevant.

(g) The commissioner, on relation of the attorney general at the

request of the commissioner, may bring an action in district

court to enjoin a person from engaging in an act or continuing a

course of action that violates this chapter. The court may order

a preliminary or final injunction.

Added by Acts 2005, 79th Leg., Ch.

336, Sec. 1, eff. September 1, 2005.

Sec. 394.215. PRIVATE REMEDIES. (a) An agreement for debt

management services between a consumer and a person that is not

registered under this subchapter is void.

(b) A consumer is entitled to recover all fees paid by the

consumer under a void agreement, costs, and reasonable attorney's

fees.

(c) In addition to any other remedies provided by this

subchapter, a consumer who is aggrieved by a violation of this

subchapter, a rule adopted by the finance commission under this

subchapter, or by any unfair, unconscionable, or deceptive act or

practice may recover:

(1) actual damages;

(2) punitive damages for acts or practices under a void

agreement; and

(3) the costs of the action, including reasonable attorney's

fees based on the amount of time involved.

(d) An aggrieved consumer may sue for injunctive and other

appropriate equitable relief to stop a person from violating this

subchapter.

(e) The remedies provided in this section are not intended to be

the exclusive remedies available to a consumer nor must the

consumer exhaust any administrative remedies provided under this

subchapter or any other applicable law.

Added by Acts 2005, 79th Leg., Ch.

336, Sec. 1, eff. September 1, 2005.