Bill Caption

Fiscal Notes

Bill Analysis

Summary: Section 6.707 (a), of the family code, essentially holds that a debt incurred by a spouse during a divorce that subjects the other spouse to liability is void if it was made with an intent to “injure the rights of the other spouse.” HB 1575 would forbid a consumer reporting agency from including such a debt in a consumer report if the consumer shows a court order finding that such a transaction violated Section 6.707 (a).

Analysis: HB 1575 imposes a regulation upon consumer reporting agencies. We don’t believe government should be able to mandate how consumer reporting agencies construct their credit reports. However, the process for appealing to a consumer reporting agency is extremely difficult, given that there is hardly a competitive marketplace for consumer reports, making these agencies largely unresponsive to appeals. This is a problem for anyone with a legitimate appeal, particularly for people that have had debts vindictively run up in their name by a spouse during a divorce proceeding.   Due to these concerns with HB 1575 and the difficulty spouses face in appealing these consumer reporting agencies, TPPA is neutral on HB 1575.