Texas House Bill HB411

Texas 2015 - 84th Regular

Caption

Relating to prohibiting certain telemarketing calls by a credit access business; adding a provision subject to criminal penalties.

Impact

If successfully enacted, HB 411 would not only amend current telemarketing regulations but would also impose criminal penalties for violations, thereby solidifying the seriousness with which the legislature views consumer privacy and protection. The bill serves to streamline and clarify existing laws surrounding telemarketing, particularly with regard to businesses that engage in credit access, which tend to target consumers with limited financial options.

Summary

House Bill 411 aims to prohibit telemarketing calls made by credit access businesses in Texas. The bill specifically amends the Business and Commerce Code to exempt certain types of calls from regulations, while establishing a clear ban on telemarketing calls from credit access businesses, irrespective of whether the consumers are listed on the Texas no-call list. This legislative measure intends to strengthen consumer protections against unsolicited telemarketing practices that may exploit vulnerable populations.

Sentiment

Discussions surrounding HB 411 have generated a mixture of support and opposition. Advocates for the bill, including consumer rights organizations, argue that it is a necessary step to protect consumers, particularly those with limited financial literacy or who may fall prey to predatory lending practices. However, some industry representatives have raised concerns that the bill could overly restrict legitimate business operations and communications, suggesting it may result in unintended consequences for businesses that operate transparently and within the boundaries of current laws.

Contention

The primary contention around HB 411 lies in the balance between consumer protection and the rights of businesses to communicate with potential clients. Critics fear that the stringent restrictions on telemarketing could hinder access to information about legitimate credit services for consumers who may benefit from them. Proponents counter that protecting vulnerable consumers from aggressive marketing practices justifies the limitations proposed. Overall, HB 411 represents a significant shift in how Texas regulates telemarketing in relation to credit access businesses.