88R13646 MLH-F
By: Meyer H.B. No. 4641
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:
(1) "Family violence" has the meaning assigned by
Section 71.004, Family Code.
(2) "Human trafficking" means conduct that
constitutes an offense under Section 20A.02, Penal Code.
(3) "Identity theft" means:
(A) a violation of Section 521.051, Business &
Commerce Code, or a substantially similar federal law or law in
another state; or
(B) a criminal offense described by Section
32.51, Penal Code, or a substantially similar federal law or law in
another state.
(4) "Vulnerable adult" has the meaning assigned by
Section 281.001.
(b) A creditor, debt collector, or third-party debt
collector may not attempt to collect a consumer debt or a portion of
a consumer debt if the consumer provides:
(1) a criminal complaint alleging the commission of an
offense under Section 32.51, Penal Code, or a substantially similar
federal law or law in another state, for which the consumer was a
victim, accompanied by a statement identifying the consumer debt or
the portion of consumer debt that resulted from the offense;
(2) 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
(3) if the consumer is a victim of family violence, a
victim of human trafficking, or a vulnerable adult, an affidavit or
unsworn declaration under Chapter 132, Civil Practice and Remedies
Code.
(c) An affidavit under Subsection (b)(3) must include:
(1) a statement that the consumer is a victim of
identity theft;
(2) documentation verifying the consumer's identity,
including a copy of the consumer's passport or a copy of a driver's
license or state identification card issued to the consumer by the
Department of Public Safety;
(3) a statement:
(A) identifying the consumer debt or affected
portion of the consumer debt incurred as a result of identity theft;
and
(B) detailing the circumstances of the identity
theft, including how the consumer debt or the affected portion of
the consumer debt was incurred; and
(4) documentation that the consumer is:
(A) a victim of family violence, as demonstrated
by any evidence acceptable under Section 92.016(b-1), Property
Code;
(B) a victim of human trafficking, as
demonstrated by:
(i) a determination from a federal, state,
or tribal governmental entity, from a nongovernmental
organization, or from a human trafficking task force determining
that the consumer is a victim of human trafficking;
(ii) a determination that the consumer is a
victim of human trafficking from a court of competent jurisdiction
in a case where the issue of whether the consumer is a victim of
human trafficking is a central issue of the case; or
(iii) a statement attesting that the
consumer is a victim of human trafficking, signed or certified by
the consumer and an entity in Subparagraph (i) or (ii); or
(C) a vulnerable adult.
(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 (b):
(1) shall immediately cease collection efforts
related to the disputed portion of the debt;
(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 collectable; and
(3) may not sell the debt or transfer it for
consideration.
SECTION 2. This Act takes effect September 1, 2023.