Texas Senate Bill SB2902

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

Relating to the collection of consumer debt incurred by certain individuals as a result of identity theft.

Impact

The bill has significant implications for the collection of consumer debt, establishing a more consumer-friendly process when it comes to identity theft. It prohibits creditors and debt collectors from harassing consumers for debts that they are not truly responsible for due to identity fraud. Furthermore, those who violate these stipulations face legal repercussions, including potential lawsuits by the consumers. This legislation aims to alleviate the burden on individuals wrongly accused of owing debts, thus fostering a fairer credit system.

Summary

SB2902 aims to protect consumers who are victims of identity theft by preventing creditors and debt collectors from attempting to collect debts incurred as a result of such theft. The bill defines identity theft in accordance with existing state and federal laws and outlines specific provisions that creditors must follow upon receiving notice of a consumer's identity theft status. Notably, consumers can provide a court order or a Federal Trade Commission identity theft report to assert their status as victims, which obligates creditors to cease collection efforts immediately.

Contention

While the bill generally presents a strong protective measure for consumers, it may face some contention among creditors and debt collection agencies who may argue that the provisions presented could complicate the collection process. Additionally, the means through which a consumer can prove identity theft—through a court order or FTC report—might be considered burdensome or time-consuming by some stakeholders in the debt collection industry. Balancing the rights of victims with the operational realities of debt collection remains a potential point of debate.

Texas Constitutional Statutes Affected

Finance Code

• Chapter 392. Debt Collection
  • Section: New Section