Bill Caption

Relating to credit repair services performed by credit repair organizations.

Fiscal Notes

Estimated Two­year Net Impact to General Revenue Related Funds for HB4266, Committee Report 1st House, Substituted : an impact of $0 through the biennium ending August 31, 2023.

Bill Analysis

HB 4266 would require a credit repair organization to provide a consumer with a disclosure detailing the inaccurate or obsolete adverse information appearing on the consumer’s credit report as well as the cost and basis for removing the information before entering into a contract with a consumer.

HB 4266 would also prohibit various activities such as the deletion of accurate credit information, even it is adverse, communications with a data consumer reporting agency, creditor, debt collector, or debt buyer without express permission from a consumer, and communicating with a person on behalf of a consumer without disclosing the sender’s identity, street address, telephone number, and facsimile number, and, if applicable, the name and street address of any parent organization of the sender.

HB 1266 would also grant the finance commission additional powers to investigate and punish violations of this bill.

Vote Recommendation Notes

Texas Action opposes HB 4266 because it violates the limited government and free market principles. While we sympathize with the aim of the bill to protect consumers from predatory credit repair organizations, as written the bill is overly prescriptive in what behaviors it would allow and prohibit.