Texas 2025 - 89th Regular

Texas House Bill HB4238 Compare Versions

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Version 2 (New)

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1	1	89R13500 MLH-F
2	2	By: Meyer, Plesa, Lambert H.B. No. 4238
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the collection of consumer debt incurred by certain
10	10	individuals as a result of identity theft.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter D, Chapter 392, Finance Code, is
13	13	amended by adding Section 392.308 to read as follows:
14	14	Sec. 392.308. CONSUMER VICTIM OF IDENTITY THEFT. (a) In
15	15	this section, "identity theft" means:
16	16	(1) a violation of Section 521.051, Business &
17	17	Commerce Code, or a substantially similar federal law or law in
18	18	another state; or
19	19	(2) a criminal offense described by Section 32.51,
20	20	Penal Code, or a substantially similar federal law or law in another
21	21	state.
22	22	(b) This section does not apply to consumer debt that is a
23	23	home loan, as defined by Chapter 343, or to the collection of a
24	24	judgment already obtained.
25	25	(c) A creditor, debt collector, or third-party debt
26	26	collector may not attempt to collect a consumer debt or a portion of
27	27	a consumer debt from a consumer if the consumer provides:
28	28	(1) a criminal complaint alleging the commission of an
29	29	offense under Section 32.51, Penal Code, or a substantially similar
30	30	federal law or law in another state, for which the consumer was a
31	31	victim, accompanied by a statement identifying the consumer debt or
32	32	the portion of consumer debt that resulted from the offense;
33	33	(2) a court order issued under Section 521.103,
34	34	Business & Commerce Code, or a substantially similar federal law or
35	35	law in another state, declaring the consumer a victim of identity
36	36	theft; or
37	37	(3) a copy of a Federal Trade Commission identity
38	38	theft victim's report, completed, signed, and filed by the
39	39	consumer:
40	40	(A) affirming that the consumer is a victim of
41	41	identity theft; and
42	42	(B) identifying the consumer debt or affected
43	43	portion of the consumer debt incurred as a result of identity theft.
44	44	(d) A creditor, debt collector, or third-party debt
45	45	collector who receives notice that a consumer debt is a result of
46	46	identity theft from a victim of identity theft in accordance with
47	47	Subsection (c):
48	48	(1) shall immediately cease efforts to collect the
49	49	disputed debt or disputed portion of the debt from the victim of
50	50	identity theft;
51	51	(2) shall send to each person who has previously
52	52	received a report relating to that debt from the creditor, debt
53	53	collector, or third-party debt collector notice that the debt is
54	54	disputed under this section and not collectible from the victim of
55	55	identity theft;
56	56	(3) may not sell the debt or transfer it for
57	57	consideration, except to collect the debt from the alleged
58	58	perpetrator of identity theft or from a responsible person other
59	59	than the victim of identity theft; and
60	60	(4) may, if the disputed debt or disputed portion of
61	61	the debt is secured by tangible personal property, enforce the
62	62	security interest under Chapter 9, Business & Commerce Code, but
63	63	may not collect or seek to collect any deficiency from the victim of
64	64	identity theft.
65	65	(e) If a creditor, debt collector, or third-party debt
66	66	collector has a good faith reason to believe that a consumer has
67	67	disputed a consumer debt or portion of a consumer debt under this
68	68	section based on a material misrepresentation that the consumer is
69	69	a victim of identity theft, the creditor, debt collector, or
70	70	third-party debt collector may file suit in a court of competent
71	71	jurisdiction to collect the debt from the consumer.
72	72	(f) In a suit under Subsection (e), the creditor, debt
73	73	collector, or third-party debt collector must show by a
74	74	preponderance of the evidence that the consumer is not a victim of
75	75	identity theft.
76	76	(g) A creditor, debt collector, or third-party debt
77	77	collector has standing to bring and may bring an action to exercise
78	78	any right, seek any remedy, or use any lawful means to collect a
79	79	consumer debt or a portion of consumer debt that is disputed under
80	80	this section from an alleged perpetrator of identity theft who by
81	81	means of identity theft obtained, used, or possessed the money,
82	82	goods, services, or property of the consumer who is a victim of the
83	83	alleged perpetrator's identity theft.
84	84	SECTION 2. This Act takes effect September 1, 2025.