| 1 | 1 | | By: Zaffirini S.B. No. 836 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the collection of consumer debt incurred as a result of |
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| 7 | 7 | | identity theft. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter D, Chapter 392, Finance Code, is |
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| 10 | 10 | | amended by adding Section 392.308 to read as follows: |
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| 11 | 11 | | Sec.392.308.CONSUMER VICTIM OF IDENTITY THEFT.(a)For the purposes of this section: |
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| 12 | 12 | | the purposes of this section: |
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| 13 | 13 | | (1) "Identity theft" means: |
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| 14 | 14 | | (A) a violation of Section 521.051, Business & |
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| 15 | 15 | | Commerce Code, or a substantially similar federal law or law in |
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| 16 | 16 | | another state; or |
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| 17 | 17 | | (B) a criminal offense described by Section |
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| 18 | 18 | | 32.51, Penal Code, or a substantially similar federal law or law in |
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| 19 | 19 | | another state. |
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| 20 | 20 | | (2) "Family violence" has the meaning assigned by |
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| 21 | 21 | | Section 71.004, Family Code. |
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| 22 | 22 | | (3) "Vulnerable adult" has the meaning assigned by |
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| 23 | 23 | | Section 281.001(5). |
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| 24 | 24 | | (4) "Victim of human trafficking" is a victim of an |
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| 25 | 25 | | offense under Section 20A.02, Penal Code. |
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| 26 | 26 | | (b) A creditor, debt collector, or third-party debt |
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| 27 | 27 | | collector must not engage in conduct prohibited by |
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| 28 | 28 | | Subsection (c) if the consumer provides: |
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| 29 | 29 | | (1) a criminal complaint alleging the commission of an |
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| 30 | 30 | | offense under Section 32.51, Penal Code, or a substantially similar |
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| 31 | 31 | | federal law or law in another state, for which the consumer was a |
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| 32 | 32 | | victim accompanied by a statement identifying the consumer debt or |
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| 33 | 33 | | portion of consumer debt that is the result of identity theft; |
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| 34 | 34 | | (2) a court order issued under Section 521.103, |
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| 35 | 35 | | Business & Commerce Code, or a substantially similar federal law or |
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| 36 | 36 | | law in another state, declaring the consumer a victim of identity |
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| 37 | 37 | | theft; or |
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| 38 | 38 | | (3) For victims of family violence, vulnerable adults, |
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| 39 | 39 | | or victims of human trafficking, an affidavit or unsworn |
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| 40 | 40 | | declaration conforming with Section 132.001, Civil Practices and |
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| 41 | 41 | | Remedies Code that is accompanied by: |
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| 42 | 42 | | (A) A statement that the consumer is a victim of |
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| 43 | 43 | | identify theft; |
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| 44 | 44 | | (B) Documentation verifying the consumer's |
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| 45 | 45 | | identity, which may include, but is not limited to a copy of the |
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| 46 | 46 | | consumer's government issued identification, a driver's license, |
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| 47 | 47 | | state issued identification card, or passport; |
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| 48 | 48 | | (C) A statement from the consumer identifying the |
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| 49 | 49 | | disputed consumer debt or portion of the consumer debt and |
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| 50 | 50 | | detailing the circumstances of the identity theft, including how |
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| 51 | 51 | | the consumer debt or the affected portion of the consumer debt was |
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| 52 | 52 | | incurred; and |
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| 53 | 53 | | (D) Documentation that a person is a victim of |
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| 54 | 54 | | family violence, a vulnerable adult, or a victim of human |
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| 55 | 55 | | trafficking: |
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| 56 | 56 | | (i) acceptable documentation that a person |
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| 57 | 57 | | is a victim of family violence includes one or more of the documents |
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| 58 | 58 | | listed in Section 92.016 (b-1), Property Code. |
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| 59 | 59 | | (ii) acceptable documentation that a person |
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| 60 | 60 | | is a vulnerable adult includes documentation that the person meets |
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| 61 | 61 | | the applicable age or disability definitions under Section 281.001 |
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| 62 | 62 | | (5). |
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| 63 | 63 | | (iii) acceptable documentation that a |
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| 64 | 64 | | person is a victim of human trafficking includes one or more of the |
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| 65 | 65 | | documents listed in 12 CFR 1022.142 (b) (6) (i). |
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| 66 | 66 | | (c) Notwithstanding other provisions in this Chapter, a |
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| 67 | 67 | | creditor, debt collector, or third-party debt collector who |
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| 68 | 68 | | receives notice that a consumer debt is a result of identity theft |
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| 69 | 69 | | from a victim of identity theft in accordance with Subsection (b) |
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| 70 | 70 | | shall: |
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| 71 | 71 | | (1) immediately cease collection of the disputed |
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| 72 | 72 | | consumer debt or any disputed portion of the consumer debt; |
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| 73 | 73 | | (2) inform any third-party receiving information |
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| 74 | 74 | | about the disputed consumer debt or disputed portion of the |
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| 75 | 75 | | consumer debt that the consumer debt or portion of consumer debt is |
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| 76 | 76 | | disputed as resulting from identity theft and is not collectable; |
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| 77 | 77 | | and |
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| 78 | 78 | | (3) not sell or transfer for consideration the |
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| 79 | 79 | | disputed consumer debt or the disputed portion of the consumer debt |
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| 80 | 80 | | except to the current owner of the consumer debt. |
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| 81 | 81 | | SECTION 2. This Act takes effect September 1, 2023. |
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