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89(R) HB 4238 - Enrolled version - Bill Text
H.B. No. 4238
AN ACT
relating to the collection of consumer debt incurred by certain
individuals 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)
In
this section, "identity theft"
means:
(1)
a violation of Section 521.051, Business &
Commerce Code, or a substantially similar federal law or law in
another state; or
(2)
a criminal offense described by Section 32.51,
Penal Code, or a substantially similar federal law or law in another
state.
(b)
This section does not apply to consumer debt that is a
home loan, as defined by Chapter 343, or to the collection of a
judgment already obtained.
(c)
A creditor, debt collector, or third-party debt
collector that receives from a consumer 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 may not attempt to collect a consumer
debt or a portion of consumer debt that is a result of the identity
theft described by the court order.
(d)
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 (c):
(1)
shall, not later than the seventh business day
after the creditor, debt collector, or third-party debt collector
receives the notice, cease efforts to collect the disputed debt or
disputed portion of the debt from the victim of identity theft;
(2)
shall send to each person who has previously
received a report relating to that debt from the creditor, debt
collector, or third-party debt collector notice that the debt is
disputed under this section and not collectible from the victim of
identity theft;
(3)
may not sell the debt or transfer it for
consideration, except to collect the debt from the alleged
perpetrator of identity theft or from a responsible person other
than the victim of identity theft; and
(4)
may, if the disputed debt or disputed portion of
the debt is secured by tangible personal property, enforce the
security interest under Chapter 9, Business & Commerce Code, but
may not collect or seek to collect any deficiency from the victim of
identity theft.
(e)
A creditor, debt collector, or third-party debt
collector has standing to bring and may bring an action to exercise
any right, seek any remedy, or use any lawful means to collect a
consumer debt or a portion of consumer debt that is disputed under
this section from an alleged perpetrator of identity theft who by
means of identity theft obtained, used, or possessed the money,
goods, services, or property of the consumer who is a victim of the
alleged perpetrator's identity theft.
SECTION 2. This Act takes effect September 1, 2025.
______________________________
______________________________
President of the Senate
Speaker of the House
I certify that H.B. No. 4238 was passed by the House on April
30, 2025, by the following vote: Yeas 135, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 4238 on May 23, 2025, by the following vote: Yeas 135, Nays 0,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4238 was passed by the Senate, with
amendments, on May 19, 2025, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor