Texas Senate Bill SB1388

Texas 2013 - 83rd Regular

Caption

Relating to identity recovery services; imposing a fee.

Impact

The introduction of SB1388 will have a significant impact on state laws concerning consumer contracts. By defining identity recovery service contracts, the law will provide consumers with mechanisms for recovery after identity theft incidents, thus filling a gap in consumer protection for those affected. The bill also requires providers of these services to report quarterly on the number of contracts sold, along with a minimal reporting fee, which will foster transparency in the industry.

Summary

SB1388 aims to amend various sections of the Finance Code and the Occupations Code in Texas to introduce and regulate identity recovery service contracts. The bill defines identity recovery services and allows for these services to be sold as a separate charge within retail installment contracts. This legislative move seeks to enhance consumer protection by ensuring that identity theft victims have access to recovery services as part of their financial agreements. It emphasizes the necessity for clear guidelines on how these services should be administered.

Contention

There are potential points of contention surrounding the implementation and market implications of SB1388. Critics may argue about the possible burdens placed on small businesses and identity recovery service providers due to the added regulatory requirements for reporting and fees. Additionally, there are concerns about the adequacy of these recovery services, leading to questions regarding the actual utility and effectiveness for consumers who may rely on them after experiencing identity theft.