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A BILL TO BE ENTITLED
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AN ACT
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relating to the correction of an error regarding the account of a |
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credit card holder. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 339, Finance Code, is amended by adding |
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Section 339.006 to read as follows: |
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Sec. 339.006. INVESTIGATION AND CORRECTION OF ERROR |
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REGARDING CREDIT CARD ACCOUNT. (a) In this section: |
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(1) "Credit card" means a card or device issued under |
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an agreement by which the issuer gives to a cardholder the right to |
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obtain credit from the issuer or another person. |
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(2) "Credit card company" means the entity to which |
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the credit card holder makes payment on the credit obtained by using |
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the credit card. |
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(b) If the holder of a credit card contacts the credit card |
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company regarding an error with respect to the interest or fees |
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charged to the holder by the company, the company shall, within 48 |
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hours of receiving the notification: |
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(1) determine whether an error has been made; and |
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(2) notify the holder of the determination by |
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telephone, facsimile, or electronic mail. |
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(c) If the credit card company determines under Subsection |
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(b) that an error has been made with respect to the interest or fees |
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charged to a credit card holder, the company shall: |
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(1) credit any overcharges to the holder's account and |
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permanently correct the error, not later than the fifth business |
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day after the date on which the 48-hour period under Subsection (b) |
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expires; and |
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(2) send to the holder written notice acknowledging |
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the error and promising to correct the error. |
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(d) Written notice under Subsection (c)(2) must be received |
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by the holder not later than the fifth business day after the date |
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on which the 48-hour period under Subsection (b) expires. |
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(e) A violation of this section is a deceptive trade |
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practice under Subchapter E, Chapter 17, Business & Commerce Code. |
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For purposes of an action brought under that statute as provided by |
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this subsection, the provision of credit under a credit card |
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agreement is considered a service and a credit card holder is |
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considered a consumer. |
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SECTION 2. Section 339.006, Finance Code, as added by this |
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Act, applies only to an error about which a credit card company is |
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notified as provided by that section on or after September 1, 2007. |
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SECTION 3. This Act takes effect September 1, 2007. |