H.B. No. 4238
 
 
 
 
AN ACT
  relating to the collection of consumer debt incurred by certain
  individuals as a result of identity theft.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter D, Chapter 392, Finance Code, is
  amended by adding Section 392.308 to read as follows:
         Sec. 392.308.  CONSUMER VICTIM OF IDENTITY THEFT. (a)  In
  this section, "identity theft" means:
               (1)  a violation of Section 521.051, Business &
  Commerce Code, or a substantially similar federal law or law in
  another state; or
               (2)  a criminal offense described by Section 32.51,
  Penal Code, or a substantially similar federal law or law in another
  state.
         (b)  This section does not apply to consumer debt that is a
  home loan, as defined by Chapter 343, or to the collection of a
  judgment already obtained.
         (c)  A creditor, debt collector, or third-party debt
  collector that receives from a consumer a court order issued under
  Section 521.103, Business & Commerce Code, or a substantially
  similar federal law or law in another state, declaring the consumer
  a victim of identity theft may not attempt to collect a consumer
  debt or a portion of consumer debt that is a result of the identity
  theft described by the court order.
         (d)  A creditor, debt collector, or third-party debt
  collector who receives notice that a consumer debt is a result of
  identity theft from a victim of identity theft in accordance with
  Subsection (c):
               (1)  shall, not later than the seventh business day
  after the creditor, debt collector, or third-party debt collector
  receives the notice, cease efforts to collect the disputed debt or
  disputed portion of the debt from the victim of identity theft;
               (2)  shall send to each person who has previously
  received a report relating to that debt from the creditor, debt
  collector, or third-party debt collector notice that the debt is
  disputed under this section and not collectible from the victim of
  identity theft;
               (3)  may not sell the debt or transfer it for
  consideration, except to collect the debt from the alleged
  perpetrator of identity theft or from a responsible person other
  than the victim of identity theft; and
               (4)  may, if the disputed debt or disputed portion of
  the debt is secured by tangible personal property, enforce the
  security interest under Chapter 9, Business & Commerce Code, but
  may not collect or seek to collect any deficiency from the victim of
  identity theft.
         (e)  A creditor, debt collector, or third-party debt
  collector has standing to bring and may bring an action to exercise
  any right, seek any remedy, or use any lawful means to collect a
  consumer debt or a portion of consumer debt that is disputed under
  this section from an alleged perpetrator of identity theft who by
  means of identity theft obtained, used, or possessed the money,
  goods, services, or property of the consumer who is a victim of the
  alleged perpetrator's identity theft.
         SECTION 2.  This Act takes effect September 1, 2025.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4238 was passed by the House on April
  30, 2025, by the following vote:  Yeas 135, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 4238 on May 23, 2025, by the following vote:  Yeas 135, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 4238 was passed by the Senate, with
  amendments, on May 19, 2025, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor