|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the correction of an error regarding the account of a |
|
|
credit card holder. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 339, Finance Code, is amended by adding |
|
|
Section 339.006 to read as follows: |
|
|
Sec. 339.006. INVESTIGATION AND CORRECTION OF ERROR |
|
|
REGARDING CREDIT CARD ACCOUNT. (a) In this section: |
|
|
(1) "Credit card" means a card or device issued under |
|
|
an agreement by which the issuer gives to a cardholder the right to |
|
|
obtain credit from the issuer or another person. |
|
|
(2) "Credit card company" means the entity to which |
|
|
the credit card holder makes payment on the credit obtained by using |
|
|
the credit card. |
|
|
(b) If the holder of a credit card contacts the credit card |
|
|
company regarding an error with respect to the interest or fees |
|
|
charged to the holder by the company, the company shall, not later |
|
|
than the 45th day after the date the company receives the |
|
|
notification: |
|
|
(1) determine whether an error has been made; and |
|
|
(2) notify the holder of the determination by |
|
|
telephone, facsimile, or electronic mail. |
|
|
(c) If the credit card company determines under Subsection |
|
|
(b) that an error has been made with respect to the interest or fees |
|
|
charged to a credit card holder, the company shall: |
|
|
(1) credit any overcharges to the holder's account and |
|
|
permanently correct the error, not later than the fifth business |
|
|
day after the 45th day after the date on which the company receives |
|
|
the notification under Subsection (b); and |
|
|
(2) send to the holder written notice acknowledging |
|
|
the error to be corrected. |
|
|
(d) Written notice under Subsection (c)(2) must be received |
|
|
by the holder not later than the fifth business day after the 45th |
|
|
day after the date on which the company receives the notification |
|
|
under Subsection (b). |
|
|
(e) A credit card company shall include a notice on or with a |
|
|
credit card account statement provided by the company. The notice |
|
|
must: |
|
|
(1) be conspicuous; |
|
|
(2) provide the name and telephone number of the |
|
|
federal regulatory agency that has primary jurisdiction to regulate |
|
|
the activities of the credit card company; and |
|
|
(3) state: "For complaints about dispute resolution, |
|
|
contact (name and telephone number of applicable federal regulatory |
|
|
agency)." |
|
|
(f) A violation of this section is a deceptive trade |
|
|
practice under Subchapter E, Chapter 17, Business & Commerce Code. |
|
|
For purposes of an action brought under that statute as provided by |
|
|
this subsection, the provision of credit under a credit card |
|
|
agreement is considered a service and a credit card holder is |
|
|
considered a consumer. |
|
|
SECTION 2. Sections 339.006(b)-(d), Finance Code, as added |
|
|
by this Act, apply only to an error about which a credit card |
|
|
company is notified as provided by that section on or after |
|
|
September 1, 2007. Section 339.006(e), Finance Code, as added by |
|
|
this Act, applies only to an account statement provided by a credit |
|
|
card company on or after September 1, 2007. |
|
|
SECTION 3. This Act takes effect September 1, 2007. |