Consumer Protection - Identity Theft Debt

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1471*

HOUSE BILL 1471
I3, D3 6lr2295

By: Delegate Embry
Introduced and read first time: February 13, 2026
Assigned to: Judiciary

A BILL ENTITLED

AN ACT concerning 1

Consumer Protection – Identity Theft Debt 2

FOR the purpose of authorizing a consumer to send a certain notice relating to alleged 3
identity theft debt to a creditor; requiring a creditor to conduct a certain 4
investigation following receipt of notice and to provide certain notice or take certain 5
actions under certain circumstances ; authorizing a consumer to file a civil action 6
under certain circumstances and authorizing a consumer to demand a jury trial; 7
prohibiting collection of certain debt under certain circumstances ; establishing a 8
certain affirmative defense and a certain rebuttable presumption in a civil action 9
under this Act; and generally relating to identity theft debt. 10

BY adding to 11
Article – Commercial Law 12
Section 14–2A–01 through 14–2A–09 to be under the new subtitle “Subtitle 2 A. 13
Identity Theft Debt” 14
Annotated Code of Maryland 15
(2025 Replacement Volume) 16

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18

Article – Commercial Law 19

SUBTITLE 2A. IDENTITY THEFT DEBT. 20

14–2A–01. 21

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 22
INDICATED. 23

2 HOUSE BILL 1471

(B) “CONSUMER” MEANS AN INDIVIDUAL SUBJECT TO A DEBT. 1

(C) (1) “CREDITOR” MEANS A PERSON , OR THE PERSON ’S SUCCESSOR , 2
ASSIGNEE, OR AGENT, CLAIMING TO OWN OR HAVE THE RIGHT TO COLLECT A DEBT 3
OWED BY A CONSUMER. 4

(2) “CREDITOR” INCLUDES A COLLECTOR AS DEFINED IN § 14–201 OF 5
THIS TITLE. 6

(D) “EVIDENCE” INCLUDES: 7

(1) A POLICE REPORT; 8

(2) A REPORT MADE TO A LAW ENFORCEMENT AGENCY; 9

(3) A FEDERAL TRADE COMMISSION IDENTITY THEFT REPORT; 10

(4) A REPORT MADE TO THE OFFICE OF THE ATTORNEY GENERAL; 11

(5) A REPORT MADE TO THE CONSUMER PROTECTION OFFICE OF A 12
LOCAL GOVERNMENT; 13

(6) A RECORD OF A GUILTY P LEA, CONVICTION, OR PROBATION 14
BEFORE JUDGMENT; AND 15

(7) AN IDENTITY THEFT PASSPORT UNDER § 8–305 OF THE CRIMINAL 16
LAW ARTICLE. 17

(E) “IDENTITY THEFT DEBT ” MEANS ANY PART OF A DEBT THAT IS 18
INCURRED BY SOMEONE OTHER THAN THE PERSON WHO IS AUTHORIZED TO INCUR 19
THE DEBT. 20

(F) “SUBJECT DEBT ” MEANS A DEBT THAT IS THE SUBJECT OF AN 21
INVESTIGATION UNDER § 14–2A–02 OF THIS SUBTITLE OR A CIVIL ACTION UNDER § 22
14–2A–03 OF THIS SUBTITLE. 23

14–2A–02. 24

(A) (1) A CONSUMER MAY SEND WRITTEN NOTICE ALLEGING THAT DEBT 25
OWED BY THE CONSUMER TO A CREDITOR IS IDENTITY THEFT DEBT. 26

(2) WRITTEN NOTICE SENT UNDER THIS SUBSECTION SHALL: 27

HOUSE BILL 1471 3

(I) 1. BE SENT BY CERTIFIED MAIL; OR 1

2. BE SENT BY ANY MEANS SU FFICIENT FOR SERVICE 2
UNDER THE MARYLAND RULES; AND 3

(II) INCLUDE EVIDENCE SUPPORTING THE ASSER TION THAT 4
THE SUBJECT DEBT IS IDENTITY THEFT DEBT. 5

(B) (1) ON RECEIPT OF NOTICE UN DER SUBSECTION (A) OF THIS 6
SECTION, A CREDITOR: 7

(I) SHALL CEASE ANY DEBT COLLECTION ACTIVITY RELATING 8
TO THE SUBJECT DEBT UNTIL NO T FEWER THAN 10 DAYS AFTER THE NOTIC E 9
REQUIRED UNDER SUBSECTION (E) OF THIS SECTION IS SENT; AND 10

(II) MAY NOT SELL THE SUBJECT DEBT NOT EARLIER THAN 10 11
DAYS AFTER THE CREDI TOR SENDS NOTICE REQ UIRED UNDER SUBSECTION (F) OF 12
THIS SECTION. 13

(2) CESSATION OF DEBT COL LECTION ACTIVITY REQ UIRED UNDER 14
THIS SUBSECTION: 15

(I) IS NOT AN ADMISSION OF GUIL T, LIABILITY, OR VIABILITY 16
OR NONVIABILITY OF THE SUBJECT DEBT; AND 17

(II) DOES NOT WAIVE ANY RI GHT OR DEFENSE AVAILABLE TO 18
THE CONSUMER OR CREDITOR IN ANY PROCEEDING. 19

(C) (1) A CREDITOR SHALL CONDU CT AND CONCLUDE A REASONABLE 20
INVESTIGATION OF ALLEGATIONS CONTAINED IN THE WRITTEN NOTICE NOT LATER 21
THAN 30 DAYS AFTER RECEIPT O F A NOTICE UNDER SUB SECTION (A) OF THIS 22
SECTION. 23

(2) AN INVESTIGATION UNDER THIS SUBSECTION SHALL CONSIDER: 24

(I) ANY EVIDENCE PROVIDED BY THE CONSUMER; AND 25

(II) ANY RELEVANT EVIDENCE IN THE POSSESSION OF THE 26
CREDITOR. 27

(D) FOR ANY SUBJECT DEBT DETERMINED NOT TO BE IDENTITY THEFT 28
DEBT, THE CREDITOR SHALL: 29

4 HOUSE BILL 1471

(1) NOTIFY THE CONSUMER IN WRITING OF THE RE SULT OF THE 1
INVESTIGATION AND THE REASON FOR THE CREDITOR’S CONCLUSION; AND 2

(2) PROVIDE THE CONSUMER WITH A COPY OF ANY R ECORD OR 3
EVIDENCE THAT FORMED THE BASIS FOR THE CREDITOR’S CONCLUSION. 4

(E) FOR ANY SUBJECT DEBT THAT IS DETERMINED TO BE IDENTITY THEFT 5
DEBT, THE CREDITOR SHALL PERMANENTLY CE ASE ANY DEBT COLLECT ION 6
ACTIVITIES RELATING TO THE IDENTITY THEFT DEBT, INCLUDING: 7

(1) VOLUNTARILY DISMISSING ANY PENDING LITIGA TION RELATING 8
TO THE IDENTITY THEFT DEBT; 9

(2) TERMINATING ANY AGREEMENT WITH A NY DEBT COLLECTOR 10
CONTRACTED TO COLLECT THE IDENTITY THEFT DEBT; AND 11

(3) NOTIFYING ANY CONSU MER REPORTING AGENCY THAT DEBT 12
PREVIOUSLY REPORTED BY THE CREDITOR WAS IDENTITY THEFT DEBT AND THAT 13
ANY RECORDS RELATING TO THE IDENTITY THEFT DEBT SHOULD BE DELET ED OR 14
MODIFIED. 15

(F) A CREDITOR SHALL NOTIF Y THE CONSUMER REGARDING THE RESULT 16
OF THE INVESTIGATION IN WRITING. 17

14–2A–03. 18

(A) SUBJECT TO SUBSECTION (D) OF THIS SECTION, A CONSUMER MAY FILE 19
AN ACTION IN THE CIRCUIT COURT IN THE COUNTY IN WHICH THE CONSUMER LIVES 20
OR WHERE THE SUBJECT DEBT WAS INCURRED, ALLEGING: 21

(1) THAT ALL OR PART OF THE SUBJECT DEBT IS IDENTITY THE FT 22
DEBT; OR 23

(2) THAT A CREDITOR VIOLATED A PROVISION OF § 14–2A–02 OF THIS 24
SUBTITLE. 25

(B) AN ACTION FILED UNDER THIS SECTION SHALL INCLUDE: 26

(1) A COPY OF THE NOTICE AND ANY EVIDENCE PROVIDED TO THE 27
CREDITOR UNDER § 14–2A–02 OF THIS SUBTITLE; AND 28

(2) INFORMATION IDENTIFYI NG THE ACCOUNTS ASSO CIATED WITH 29
THE SUBJECT DEBT. 30
HOUSE BILL 1471 5

(C) A CONSUMER MAY DEMAND A JURY TR IAL IN A N ACTION BROUGHT 1
UNDER THIS SUBTITLE. 2

(D) A CONSUMER MAY NOT FILE A COMPL AINT UNDER THIS SECT ION 3
DURING THE 30–DAY INVESTIGATORY PE RIOD UNDER § 14–2A–02(C)(1) OF THIS 4
SUBTITLE. 5

(E) A CREDITOR MAY NOT COLLECT OR ATTEMPT TO COLLECT A DEBT THAT 6
IS SUBJECT TO A PROC EEDING UNDER THIS SE CTION DURING THE PENDENCY OF 7
THE PROCEEDING. 8

14–2A–04. 9

(A) IN AN ACTION BROUGHT UNDER THIS SUBTITLE , A CONSUMER WHO 10
PROVES BY A PREPONDE RANCE OF THE EVIDENC E THAT A CREDITOR VIOL ATED A 11
PROVISION OF THIS SUBTITLE IS ENTITLED TO: 12

(1) DECLARATORY JUDGMENT THAT A DEBT IS IDENTITY THEFT 13
DEBT, IN WHOLE OR IN PART; AND 14

(2) AN INJUNCTION PROHIBITING A CREDITOR FROM: 15

(I) HOLDING OR ATTEMPTING TO HOLD THE CONSUMER 16
LIABLE FOR THE IDENTITY THEFT DEBT; 17

(II) ENFORCING OR ATTEMPTI NG TO ENFORCE A JUDG MENT 18
RELATED TO THE IDENTITY THEFT DEBT; OR 19

(III) ASSIGNING THE IDENTITY THEFT DEBT TO A THIRD PARTY. 20

(B) IF A CONSUMER PREVAILS IN AN ACTION BROUGHT UNDER § 14–2A–03 21
OF THIS SUBTITLE, THE ALLEGED IDENTITY THEFT DEBTOR IS ENTITLED TO: 22

(1) DAMAGES; 23

(2) COURT COSTS; AND 24

(3) REASONABLE ATTORNEY’S FEES. 25

(C) IN AN ACTION BROUGHT UNDER THIS S UBTITLE, IF A CONSUMER 26
PROVES BY A PREPONDERANCE O F THE EVIDENCE THAT A CREDITOR KNOW INGLY 27
FAILED TO COMPLY WITH § 14–2A–02 OF THIS SUBTITLE , THE CONSUMER IS 28
6 HOUSE BILL 1471

ENTITLED TO: 1

(1) DOUBLE DAMAGES; 2

(2) COURT COSTS; AND 3

(3) REASONABLE ATTORNEY’S FEES. 4

14–2A–05. 5

IT IS AN AFFIRMATIVE DEFEN SE TO A CLAIM AGAINST A CR EDITOR UNDER 6
THIS SUBTITLE THAT THE CONSUMER: 7

(1) AGREED TO INCUR THE D EBT BEFORE OR AFTER IT WAS 8
INCURRED; OR 9

(2) RECEIVED THE BENEFIT OF THE DEBT WHILE KNOWING THAT IT 10
WAS INCURRED IN THE CONSUMER’S NAME. 11

14–2A–06. 12

THERE IS A REBUTTABLE PRESUMPTION THAT A D EBT IS IDENTITY THEF T 13
DEBT I F AN INDIVIDUAL IS F OUND GUILTY , PLEADS GUILTY , OR RECEIVE S 14
PROBATION BEFORE JUD GMENT FOR A VIOLATIO N OF § 8–301 OF THE CRIMINAL 15
LAW ARTICLE THAT GAVE RISE TO THE DEBT. 16

14–2A–07. 17

ANY TIME LIMITATION ON DEBT COLLECTION SHALL BE TOLLED FOR ANY 18
PERIOD DURING WHICH A CREDITOR IS PROHIBITED FROM COLLECTING THE DEBT 19
UNDER THIS SUBTITLE. 20

14–2A–08. 21

(A) A CONSUMER MAY NOT WAIVE ANY PROTECTIONS GRANTED UNDER THIS 22
SUBTITLE. 23

(B) NOTHING IN THIS SUBTI TLE MAY BE CONSTRUED TO PREVENT A 24
CONSUMER FROM PURSUING ANY OTHER REMEDY PROVIDED BY LAW. 25

14–2A–09. 26

A CREDITOR MAY SEEK TO RECOVER AN IDENTITY THEFT DEBT FROM A 27
HOUSE BILL 1471 7

PERSON THAT CAUSED THE DEBT TO BE INCURRED. 1

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 2
October 1, 2026. 3