Texas Senate Bill SB2168

Texas 2009 - 81st Regular

Caption

Relating to the use of behavioral analysis or scoring in certain consumer contracts.

Impact

If enacted, SB2168 would amend existing laws found in Chapter 308 of the Finance Code by introducing Section 308.0021. This addition would classify violations of the stated prohibitions as deceptive trade practices under Subchapter E of the Business & Commerce Code, thus establishing new grounds for consumer protection. The bill would primarily impact consumers entering into new credit contracts after the effective date, ensuring they are safeguarded against potentially discriminatory practices related to behavioral scoring.

Summary

Senate Bill 2168 seeks to regulate the use of behavioral analysis and scoring in consumer contracts, specifically targeting the practices of credit extensions. The proposed legislation aims to protect consumers from adverse actions that may arise due to their financial behaviors or the behaviors of other individuals. The bill explicitly prohibits creditors from reducing the amount of credit available to a consumer based on the types of transactions they engage in or based on the financial activities of others who exhibit similar purchasing behavior.

Contention

Notable points of contention surrounding SB2168 may include debates over the balance between consumer protection and the ability of creditors to assess risk. Proponents of the bill argue that it is essential to prevent discrimination based on factors beyond a consumer's control, while opponents may raise concerns about the implications for lenders' risk assessment processes. The law's effectiveness in achieving its objectives while not hindering legitimate credit practices will likely be a topic of discussion.

Last_action

The last recorded action on SB2168 was its referral to the Business & Commerce committee on March 31, 2009, indicating that it is still undergoing review and discussion within the legislative process.