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Texas Business & Commerce Code - Section 20.01. Definitions

Legal Research Home > Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 20.01. Definitions

§ 20.01. DEFINITIONS.  In this chapter:                                     
		(1)  "Adverse action" includes:                                               
			(A)  the denial of, increase in a charge for, or 
reduction in the amount of insurance for personal, family, or 
household purposes;
			(B)  the denial of employment or other decision 
made for employment purposes that adversely affects a current or 
prospective employee;  or
			(C)  an action or determination with respect to a 
consumer's application for credit that is adverse to the consumer's 
interests.
		(2)  "Consumer" means an individual who resides in this 
state.              
		(3)  "Consumer file" means all of the information about 
a consumer that is recorded and retained by a consumer reporting 
agency regardless of how the information is stored.
		(4)  "Consumer report" means a communication or other 
information by a consumer reporting agency relating to the credit 
worthiness, credit standing, credit capacity, debts, character, 
general reputation, personal characteristics, or mode of living of 
a consumer that is used or expected to be used or collected, wholly 
or partly, as a factor in establishing the consumer's eligibility 
for credit or insurance for personal, family, or household 
purposes, employment purposes, or other purpose authorized under 
Sections 603 and 604 of the Fair Credit Reporting Act (15 U.S.C. 
Sections 1681a and 1681b), as amended.  The term does not include:
			(A)  a report containing information solely on a 
transaction between the consumer and the person making the report;
			(B)  an authorization or approval of a specific 
extension of credit directly or indirectly by the issuer of a credit 
card or similar device;
			(C)  a report in which a person who has been 
requested by a third party to make a specific extension of credit 
directly or indirectly to a consumer makes a decision with respect 
to the request, if the third party advises the consumer of the name 
and address of the person to whom the request was made and the 
person makes the disclosures that must be made under Section 615 of 
the Fair Credit Reporting Act (15 U.S.C. Section 1681m), as 
amended, to the consumer in the event of adverse action against the 
consumer;
			(D)  any communication of information described 
in this subdivision among persons related by common ownership or 
affiliated by corporate control;  or
			(E)  any communication of other information among 
persons related by common ownership or affiliated by corporate 
control, if it is clearly and conspicuously disclosed to the 
consumer that the information may be communicated among such 
persons and the consumer is given the opportunity before the time 
that the information is initially communicated to direct that such 
information not be communicated among such persons.
		(5)  "Consumer reporting agency" means a person that 
regularly engages wholly or partly in the practice of assembling or 
evaluating consumer credit information or other information on 
consumers to furnish consumer reports to third parties for monetary 
fees, for dues, or on a cooperative nonprofit basis.  The term does 
not include a business entity that provides only check verification 
or check guarantee services.
		(6)  "Investigative consumer report" means all or part 
of a consumer report in which information on the character, general 
reputation, personal characteristics, or mode of living of a 
consumer is obtained through a personal interview with a neighbor, 
friend, or associate of the consumer or others with whom the 
consumer is acquainted or who may have knowledge concerning any 
such information.  The term does not include specific factual 
information on a consumer's credit record obtained directly from a 
creditor of the consumer or from a consumer reporting agency when 
the information was obtained directly from a creditor of the 
consumer or from the consumer.
		(7)  "Security alert" means a notice placed on a 
consumer file that alerts a recipient of a consumer report 
involving that consumer file that the consumer's identity may have 
been used without the consumer's consent to fraudulently obtain 
goods or services in the consumer's name.
		(8)  "Security freeze" means a notice placed on a 
consumer file that prohibits a consumer reporting agency from 
releasing a consumer report relating to the extension of credit 
involving that consumer file without the express authorization of 
the consumer.

Added by Acts 1997, 75th Leg., ch. 1396, § 33(a), eff. Oct. 1, 
1997.  Amended by Acts 2003, 78th Leg., ch. 1326, § 1, eff. Sept. 
1, 2003.

Last modified: August 10, 2007