| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
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 may not attempt to collect a consumer debt or a portion of |
|
|
a consumer debt from a consumer if the consumer provides: |
|
|
(1) 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; or |
|
|
(2) a copy of a Federal Trade Commission identity |
|
|
theft victim's report, completed, signed, and filed by the |
|
|
consumer: |
|
|
(A) affirming that the consumer is a victim of |
|
|
identity theft; and |
|
|
(B) identifying the consumer debt or affected |
|
|
portion of the consumer debt incurred as a result of identity theft. |
|
|
(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 immediately 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) If a creditor, debt collector, or third-party debt |
|
|
collector has a good faith reason to believe that a consumer has |
|
|
disputed a consumer debt or portion of a consumer debt under this |
|
|
section based on a material misrepresentation that the consumer is |
|
|
a victim of identity theft, the creditor, debt collector, or |
|
|
third-party debt collector may file suit in a court of competent |
|
|
jurisdiction to collect the debt from the consumer. |
|
|
(f) 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. |