82R2013 KFF-D
By: Alonzo H.B. No. 376
A BILL TO BE ENTITLED
AN ACT
relating to use of a credit score by a business or lender.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 5, Business & Commerce Code, is
amended by adding Chapter 73 to read as follows:
CHAPTER 73. USE OF CREDIT SCORE
Sec. 73.001. DEFINITION. In this chapter, "credit score"
means a number or rating derived from an algorithm, computer
application, model, or other process that is based on credit
information and used to predict a consumer's creditworthiness or
credit capacity.
Sec. 73.002. DISCRIMINATION PROHIBITED. (a) A business
may not discriminate against a customer in the price or rate that
the business charges for a good or service based on the customer's
credit score.
(b) A person who makes an extension of credit to a borrower
may not discriminate against the borrower in the amount or rate of
interest charged based on the borrower's credit score.
(c) A violation of this section is a deceptive trade
practice in addition to the practices described by Subchapter E,
Chapter 17, and is actionable under that subchapter.
SECTION 2. This Act takes effect September 1, 2011.