Bill > SB696

This bill amends the Texas Business & Commerce Code to modify the reporting restrictions for consumer reporting agencies (CRAs), which are organizations that collect and sell credit information about individuals. The key changes include prohibiting CRAs from including records of arrests, charges, or indictments for alleged crimes that did not result in a conviction or deferred adjudication community supervision in consumer reports. The bill maintains existing limitations on reporting other types of negative information, such as bankruptcies (which can be reported for up to 10 years), civil suits and judgments (up to 7 years), tax liens (up to 7 years), and criminal convictions (up to 7 years). Additionally, the bill continues to protect consumers by preventing reporting of medical collection accounts when the individual was covered by health insurance at the time of the medical service. The bill will take effect immediately if it receives a two-thirds vote in the Texas legislature, or on September 1, 2025, if it does not receive the required immediate voting support. These changes are designed to prevent potentially damaging and outdated information from negatively impacting an individual's credit report.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB696