Texas House Bill HB2297

Texas 2011 - 82nd Regular

• Introduced: 3/4/11
• Refer: 3/10/11

Caption

Relating to the requirement that certain insurers provide consumers with information related to improving their credit scores.

Impact

The introduction of this statute will require insurers to implement new compliance measures involving the communication of credit score improvement information. This could lead to enhanced consumer awareness surrounding credit scores and the factors affecting them, fostering greater financial literacy. Furthermore, it may encourage consumers to take steps to improve their credit ratings, potentially leading to lower insurance premiums over time. Insurers will need to reassess their communication strategies and customer service protocols to meet the stipulations outlined in the bill.

Summary

House Bill 2297 mandates that certain insurance companies provide consumers information regarding how to improve their credit scores based on the insurers' credit scoring methodologies. Specifically, the bill requires that this information be delivered to the consumer not later than the 10th day following the insurer's determination of the consumer's credit score. This legislative measure represents a proactive approach to enhancing consumer knowledge and optimism about their creditworthiness, particularly as insurance premiums often hinge upon credit scores.

Sentiment

The sentiment surrounding HB 2297 appears to be generally positive, as it is designed to protect consumers by providing them with relevant information that can assist in their financial decision-making. Supporters of the bill argue that empowering consumers with knowledge about their credit scores can ultimately promote better financial practices and result in long-term benefits for individuals. However, some stakeholders express concerns about the feasibility of such mandates on insurers, particularly regarding the costs associated with implementing necessary changes.

Contention

While the bill's intent focuses on consumer education and empowerment, notable points of contention may arise concerning the practicalities of enforcement and compliance. Insurers may argue about the administrative burden of precisely determining and promptly communicating the specific factors influencing each consumer's credit score. Additionally, there may be apprehensions regarding whether this new requirement could lead to confusion among consumers or result in unintended negative consequences, such as misinterpretation of the provided information.