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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of behavioral analysis or scoring in certain |
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consumer contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 308, Finance Code, is amended by adding |
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Section 308.0021 to read as follows: |
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Sec. 308.0021. BEHAVIORAL ANALYSIS OR SCORING PROHIBITED. |
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(a) In this section: |
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(1) "Consumer contract" means a written agreement for |
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the extension of consumer credit. |
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(2) "Extension of consumer credit" means the right to |
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defer payment of debt offered or granted primarily for personal, |
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family, or household purposes or to incur the debt and defer its |
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payment. |
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(b) A person extending credit under a consumer contract may |
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not reduce or eliminate the amount of credit available to a consumer |
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under the contract or take any other adverse action against a |
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consumer under the contract based on: |
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(1) the types of transactions the consumer enters into |
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using the credit extended under the consumer contract; or |
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(2) the financial behavior of someone other than the |
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consumer, including the financial behavior of others who make |
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purchases similar to the consumer. |
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(c) 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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and is actionable under that subchapter. |
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SECTION 2. The change in law made by this Act applies only |
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to a consumer contract entered into on or after the effective date |
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of this Act. A consumer contract entered into before the effective |
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date of this Act is governed by the law in effect when the contract |
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was entered into, and the former law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |