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A BILL TO BE ENTITLED
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AN ACT
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relating to use of a credit score by a business or lender. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 35, Business & Commerce |
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Code, is amended by adding Section 35.63 to read as follows: |
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Sec. 35.63. USE OF CREDIT SCORE. (a) In this section, |
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"credit score" means a number or rating derived from an algorithm, |
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computer application, model, or other process that is based on |
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credit information and used to predict a consumer's |
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creditworthiness or credit capacity. |
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(b) A business may not discriminate against a customer in |
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the price or rate that the business charges for a good or service, |
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including a utility service, based on the customer's credit score. |
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(c) A person who makes an extension of credit to a borrower |
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may not discriminate against the borrower in the amount or rate of |
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interest charged based on the borrower's credit score. |
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(d) A violation of this section is a deceptive trade |
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practice in addition to the practices described by Subchapter E, |
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Chapter 17, and is actionable under that subchapter. |
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SECTION 2. This Act takes effect September 1, 2007 |
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. |