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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. Subtitle A, Title 5, Business & Commerce Code, is |
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amended by adding Chapter 73 to read as follows: |
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CHAPTER 73. USE OF CREDIT SCORE |
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Sec. 73.001. DEFINITION. In this chapter, "credit score" |
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means a number or rating derived from an algorithm, computer |
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application, model, or other process that is based on credit |
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information and used to predict a consumer's creditworthiness or |
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credit capacity. |
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Sec. 73.002. DISCRIMINATION PROHIBITED. (a) A business |
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may not discriminate against a customer in the price or rate that |
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the business charges for a good or service, including a utility |
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service, based on the customer's credit score. |
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(b) 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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(c) 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, 2009. |