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Texas Business & Commerce Code - Section 20.06. Dispute Procedure

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§ 20.06. DISPUTE PROCEDURE.  (a) If the completeness or 
accuracy of information contained in a consumer's file is disputed 
by the consumer and the consumer notifies the consumer reporting 
agency of the dispute, the agency shall reinvestigate the disputed 
information free of charge and record the current status of the 
disputed information not later than the 30th business day after the 
date on which the agency receives the notice.  The consumer 
reporting agency shall provide the consumer with the option of 
notifying the agency of a dispute concerning the consumer's file by 
speaking directly to a representative of the agency during normal 
business hours.
	(b)  Not later than the fifth business day after the date on 
which a consumer reporting agency receives notice of a dispute from 
a consumer in accordance with Subsection (a), the agency shall 
provide notice of the dispute to each person who provided any 
information related to the dispute.
	(c)  A consumer reporting agency may terminate a 
reinvestigation of information disputed by a consumer under 
Subsection (a) if the agency reasonably determines that the dispute 
is frivolous or irrelevant.  An agency that terminates a 
reinvestigation of disputed information under this subsection 
shall promptly notify the consumer of the termination and the 
reasons for the termination by mail, or if authorized by the 
consumer, by telephone.  The presence of contradictory information 
in a consumer's file does not by itself constitute reasonable 
grounds for determining that the dispute is frivolous or 
irrelevant.
	(d)  If disputed information is found to be inaccurate or 
cannot be verified after a reinvestigation under Subsection (a), 
the consumer reporting agency, unless otherwise directed by the 
consumer, shall promptly delete the information from the consumer's 
file, revise the consumer file, and provide the revised consumer 
report to the consumer and to each person who requested the consumer 
report within the preceding six months.  The consumer reporting 
agency may not report the inaccurate or unverified information in 
subsequent reports.
	(e)  Information deleted under Subsection (d) may not be 
reinserted in the consumer's file unless the person who furnishes 
the information to the consumer reporting agency reinvestigates and 
states in writing or by electronic record to the agency that the 
information is complete and accurate.
	(f)  A consumer reporting agency shall provide written 
notice of the results of a reinvestigation or reinsertion made 
under this section not later than the fifth business day after the 
date on which the reinvestigation or reinsertion has been 
completed.  The notice must include:
		(1)  a statement that the reinvestigation is complete;                        
		(2)  a statement of the determination made by the 
agency on the completeness or accuracy of the disputed information;
		(3)  a copy of the consumer's file or consumer report 
and a description of the results of the reinvestigation;
		(4)  a statement that a description of the procedure 
used to determine the accuracy and completeness of the information 
shall be provided to the consumer by the agency on request, 
including the name, business address, and, if available, the 
telephone number of each person contacted in connection with the 
information;
		(5)  a statement that the consumer is entitled to add a 
statement to the consumer's file disputing the accuracy or 
completeness of the information as provided by Section 611 of the 
Fair Credit Reporting Act (15 U.S.C. Section 1681i), as amended;  
and
		(6)  a statement that the consumer may be entitled to 
dispute resolution as prescribed by this section, after the 
consumer receives the notice specified under this subsection.
	(g)  This section does not require a person who obtains a 
consumer report for resale to another person to alter or correct an 
inaccuracy in the consumer report if the report was not assembled or 
prepared by the person.
	(h)  This section applies to a business offering check 
verification or check guarantee services in this state.

Added by Acts 1997, 75th Leg., ch. 1396, § 33(a), eff. Oct. 1, 
1997.  Amended by Acts 2003, 78th Leg., ch. 851, § 3, eff. Sept. 
1, 2003;  Acts 2003, 78th Leg., ch. 1291, § 1, eff. Sept. 1, 2003.

Last modified: August 10, 2007