Texas Finance Code

§ 393.304 — FALSE OR MISLEADING REPRESENTATION OR STATEMENT

FI § 393.304Title 5. PROTECTION OF CONSUMERS OF FINANCIAL SERVICES · Ch. 393. CREDIT SERVICES ORGANIZATIONS · Art. D. PROHIBITIONS AND RESTRICTIONS

Statute text

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A credit services organization or a representative of the organization may not:

(1)make or use a false or misleading representation in the offer or sale of the services of the organization, including:

(A)guaranteeing to "erase bad credit" or words to that effect unless the representation clearly discloses this can be done only if the credit history is inaccurate or obsolete; and

(B)guaranteeing an extension of consumer credit regardless of the person's credit history unless the representation clearly discloses the eligibility requirements for obtaining the extension; or

(2)make, or advise a consumer to make, a statement relating to a consumer's credit worthiness, credit standing, or credit capacity that the person knows, or should know by the exercise of reasonable care, to be false or misleading to a:

(A)consumer reporting agency; or

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Legislative history

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.