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Texas Business & Commerce Code - Section 20.08. Consumer's Right To File Action In Court Or Arbitrate Disputes

Legal Research Home > Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 20.08. Consumer's Right To File Action In Court Or Arbitrate Disputes

§ 20.08. CONSUMER'S RIGHT TO FILE ACTION IN COURT OR 
ARBITRATE DISPUTES.  (a) An action to enforce an obligation of a 
consumer reporting agency to a consumer under this chapter may be 
brought in any court as provided by the Fair Credit Reporting Act 
(15 U.S.C. Section 1681 et seq.), as amended, or, if agreed to by 
both parties, may be submitted to binding arbitration after the 
consumer has followed all dispute procedures in Section 20.06 and 
has received the notice specified in Section 20.06(f) in the manner 
provided by the rules of the American Arbitration Association.
	(b)  A decision rendered by an arbitrator under this section 
does not affect the validity of an obligation or debt owed by the 
consumer to any party.
	(c)  A prevailing party in an action or arbitration 
proceeding brought under this section shall be compensated for the 
party's attorney fees and costs of the proceeding as determined by 
the court or arbitration.
	(d)  A consumer may not submit to arbitration more than one 
action against a particular consumer reporting agency during any 
120-day period.
	(e)  The results of an arbitration action brought against a 
consumer reporting agency doing business in this state shall be 
communicated in a timely manner to other consumer reporting 
agencies doing business in this state.
	(f)  If a determination is made in favor of a consumer after 
submission of a dispute to arbitration, the disputed adverse 
information in the consumer's file or record shall be removed or 
stricken in a timely manner.  If the adverse information is not 
removed or stricken, the consumer may bring an action against the 
noncomplying agency under this section regardless of the 120-day 
waiting period required under this section.

Added by Acts 1997, 75th Leg., ch. 1396, § 33(a), eff. Oct. 1, 
1997.     

Last modified: August 10, 2007