Texas Business & Commerce Code - Section 35.59. Verification Of Consumer Identity
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§ 35.59. VERIFICATION OF CONSUMER IDENTITY. (a) In this
section:
(1) "Consumer report" has the meaning assigned by
Section 20.01.
(2) "Extension of credit" does not include an increase
in the dollar limit of an existing open-end credit plan as defined
by Regulation Z (12 C.F. R. Section 226.2), as amended, or any
change to, or review of, an existing credit account.
(3) "Security alert" has the meaning assigned by
Section 20.01.
(b) A person who receives notification of a security alert
under Section 20.032 in connection with a request for a consumer
report for the approval of a credit-based application, including an
application for an extension of credit, a purchase, lease, or
rental agreement for goods, or for an application for a
noncredit-related service, may not lend money, extend credit, or
authorize an application without taking reasonable steps to verify
the consumer's identity.
(c) If a consumer has included with a security alert a
specified telephone number to be used for identity verification
purposes, a person who receives that number with a security alert
must take reasonable steps to contact the consumer using that
number before lending money, extending credit, or completing any
purchase, lease, or rental of goods, or approving any
noncredit-related services.
(d) If a person uses a consumer report to facilitate the
extension of credit or for any other transaction on behalf of a
subsidiary, affiliate, agent, assignee, or prospective assignee,
that person, rather than the subsidiary, affiliate, agent,
assignee, or prospective assignee, may verify the consumer's
identity.
Added by Acts 2003, 78th Leg., ch. 1326, § 7, eff. Sept. 1, 2003.
Section: 35.57 35.58 35.58 35.58 35.581 35.581 35.585 35.59 35.591 35.60 35.61 35.62 35.71 35.72 35.721
Last modified: August 10, 2007
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