Mississippi House Bill HB135

Mississippi 2023 Regular Session

• Introduced: 1/4/23
• Refer: 1/4/23
• Failed: 1/31/23

Caption

Identity theft; establish procedure for victim to have debt forgiven and credit reports purged.

Impact

The implications of HB135 are significant for both consumers and creditors. If a creditor fails to forgive the debt within 60 days of receiving notice from the victim, the victim may pursue legal action in chancery court, without the requirement for the creditor to file an answer for the case to be heard. This lends considerable power to identity theft victims, allowing them to clear their names and regain control over their financial situations. Additionally, the bill mandates that creditors must report the debt forgiveness to all credit reporting agencies referenced in the victim's communication, which could aid in rapidly restoring victims' credit standings.

Summary

House Bill 135 establishes a legal procedure designed to assist victims of identity theft in having debts forgiven and their credit reports purged. The bill clearly defines identity theft as the unauthorized use of an individual's personal identity information to obtain valuables. Under this new legislation, victims are empowered to communicate directly with creditors about any debts incurred through identity theft, informing them of the situation and requesting the forgiveness of these debts. They must do this through certified mail to provide official notice to the creditors involved.

Contention

While HB135 aims to protect consumers, it may raise concerns among creditors regarding the administrative burden of processing such claims and the potential for abuse of the system. Creditors might be worried about being held liable for debts they did not originally create, potentially leading to challenges in the verification of identity theft claims. This balance between consumer protection and creditor rights will likely be a focal point of discussion and scrutiny as the bill is implemented and tested in real-world scenarios.