By: Zaffirini S.B. No. 836
A BILL TO BE ENTITLED
AN ACT
relating to the collection of consumer debt incurred 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)For the purposes of this section:
the purposes of this section:
(1) "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.
(2) "Family violence" has the meaning assigned by
Section 71.004, Family Code.
(3) "Vulnerable adult" has the meaning assigned by
Section 281.001(5).
(4) "Victim of human trafficking" is a victim of an
offense under Section 20A.02, Penal Code.
(b) A creditor, debt collector, or third-party debt
collector must not engage in conduct prohibited by
Subsection (c) 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
portion of consumer debt that is the result of identity theft;
(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) For victims of family violence, vulnerable adults,
or victims of human trafficking, an affidavit or unsworn
declaration conforming with Section 132.001, Civil Practices and
Remedies Code that is accompanied by:
(A) A statement that the consumer is a victim of
identify theft;
(B) Documentation verifying the consumer's
identity, which may include, but is not limited to a copy of the
consumer's government issued identification, a driver's license,
state issued identification card, or passport;
(C) A statement from the consumer identifying the
disputed consumer debt or portion of the consumer debt and
detailing the circumstances of the identity theft, including how
the consumer debt or the affected portion of the consumer debt was
incurred; and
(D) Documentation that a person is a victim of
family violence, a vulnerable adult, or a victim of human
trafficking:
(i) acceptable documentation that a person
is a victim of family violence includes one or more of the documents
listed in Section 92.016 (b-1), Property Code.
(ii) acceptable documentation that a person
is a vulnerable adult includes documentation that the person meets
the applicable age or disability definitions under Section 281.001
(5).
(iii) acceptable documentation that a
person is a victim of human trafficking includes one or more of the
documents listed in 12 CFR 1022.142 (b) (6) (i).
(c) Notwithstanding other provisions in this Chapter, 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)
shall:
(1) immediately cease collection of the disputed
consumer debt or any disputed portion of the consumer debt;
(2) inform any third-party receiving information
about the disputed consumer debt or disputed portion of the
consumer debt that the consumer debt or portion of consumer debt is
disputed as resulting from identity theft and is not collectable;
and
(3) not sell or transfer for consideration the
disputed consumer debt or the disputed portion of the consumer debt
except to the current owner of the consumer debt.
SECTION 2. This Act takes effect September 1, 2023.