The bill includes requirements on communication between credit repair organizations and debt collectors. Editor’s note: This article is available for members only.
4/14/2021 10:00
Texas State Rep. Hugh Shine, R-Temple, recently introduced a bill, H.B. 4266, to amend the state’s finance code and add requirements for credit repair service organizations.
It was referred to the state’s committee on Pensions, Investments and Financial Services March 29.
The bill defines a credit repair organization as a “credit services organization that provides, or represents that the organization can or will provide, for the payment of valuable consideration, any of the following services with respect to the extension of consumer credit by others: Improving a consumer’s credit history or rating; or providing advice or assistance to a consumer.”
Regarding debt collection, requirements in the bill on communications with a consumer reporting agency or data furnisher include that a credit repair organization or a representative of the organization may not:
- Communicate with a consumer reporting agency, creditor, debt collector, or debt buyer about a consumer without the written authorization of the consumer; or
- Communicate with a consumer reporting agency, creditor, debt collector, or debt buyer by impersonating a consumer and failing to identify as a credit repair organization if the credit repair organization initiates the communication.
A credit repair organization or a representative of the organization shall provide with the first written communication to a consumer reporting agency or data furnisher sufficient information to investigate a dispute of an item related to an
extension of consumer credit that is in the creditor’s, debt collector’s, debt buyer’s or consumer reporting agency’s files, including any relevant information and copies of documents concerning the disputed item.
If approved and signed by the governor, the bill will take effect Sept. 1, 2021.