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Thursday, November 21, 2024

Consumer Data Industry Association sues Texas over law that regulates information on consumer reports

Federal Court
Credit card tech

AUSTIN, Texas (Legal Newsline) – A trade association is suing the state of Texas over a new law enacted in May regarding what information can be included in a consumer report.

Consumer Data Industry Association filed a complaint on Sept. 9 in the U.S. District Court for the Western District of Texas against the state of Texas, through Attorney General Ken Paxton, citing the Fair Credit Reporting Act.

The suit states the plaintiff is seeking to prevent the state of Texas from undermining the accuracy, integrity, and reliability of consumer report information that it alleges is essential to the “needs of commerce” and the “efficiency of the banking system" through the enforcement of Senate Bill 1037. The bill is an amendment to the Texas Business and Commerce Chapter 20. The plaintiff alleges the amendment is preempted by the FCRA.

The suit states the bill attempts to prohibit a consumer reporting agency from including information related to a medical collection account when preparing a credit report.

The plaintiff is seeking the court to determine what medical collection account information may be included in a report. The plaintiff is represented by Edward D. Burbach and Nanette K. Beaird of Foley & Lardner LLP in Austin.

U.S. District Court for the Western District of Texas case number 1:19-CV-00876

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