| 1 | 1 | | 81R6233 KFF-D |
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| 2 | 2 | | By: Ellis S.B. No. 2168 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the use of behavioral analysis or scoring in certain |
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| 8 | 8 | | consumer contracts. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 308, Finance Code, is amended by adding |
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| 11 | 11 | | Section 308.0021 to read as follows: |
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| 12 | 12 | | Sec. 308.0021. BEHAVIORAL ANALYSIS OR SCORING PROHIBITED. |
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| 13 | 13 | | (a) In this section: |
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| 14 | 14 | | (1) "Consumer contract" means a written agreement for |
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| 15 | 15 | | the extension of consumer credit. |
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| 16 | 16 | | (2) "Extension of consumer credit" means the right to |
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| 17 | 17 | | defer payment of debt offered or granted primarily for personal, |
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| 18 | 18 | | family, or household purposes or to incur the debt and defer its |
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| 19 | 19 | | payment. |
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| 20 | 20 | | (b) A person extending credit under a consumer contract may |
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| 21 | 21 | | not reduce or eliminate the amount of credit available to a consumer |
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| 22 | 22 | | under the contract or take any other adverse action against a |
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| 23 | 23 | | consumer under the contract based on: |
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| 24 | 24 | | (1) the types of transactions the consumer enters into |
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| 25 | 25 | | using the credit extended under the consumer contract; or |
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| 26 | 26 | | (2) the financial behavior of someone other than the |
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| 27 | 27 | | consumer, including the financial behavior of others who make |
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| 28 | 28 | | purchases similar to the consumer. |
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| 29 | 29 | | (c) A violation of this section is a deceptive trade |
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| 30 | 30 | | practice under Subchapter E, Chapter 17, Business & Commerce Code, |
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| 31 | 31 | | and is actionable under that subchapter. |
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| 32 | 32 | | SECTION 2. The change in law made by this Act applies only |
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| 33 | 33 | | to a consumer contract entered into on or after the effective date |
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| 34 | 34 | | of this Act. A consumer contract entered into before the effective |
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| 35 | 35 | | date of this Act is governed by the law in effect when the contract |
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| 36 | 36 | | was entered into, and the former law is continued in effect for that |
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| 37 | 37 | | purpose. |
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| 38 | 38 | | SECTION 3. This Act takes effect September 1, 2009. |
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