89R11050 MLH-F     By: Zaffirini S.B. No. 2902       A BILL TO BE ENTITLED   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 may not attempt to collect a consumer debt or a portion of   a consumer debt from a consumer if the consumer provides:                (1)  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; or                (2)  a copy of a Federal Trade Commission identity   theft victim's report, completed, signed, and filed by the   consumer:                      (A)  affirming that the consumer is a victim of   identity theft; and                      (B)  identifying the consumer debt or affected   portion of the consumer debt incurred as a result of identity theft.          (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 immediately 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)  If a creditor, debt collector, or third-party debt   collector has a good faith reason to believe that a consumer has   disputed a consumer debt or portion of a consumer debt under this   section based on a material misrepresentation that the consumer is   a victim of identity theft, the creditor, debt collector, or   third-party debt collector may file suit in a court of competent   jurisdiction to collect the debt from the consumer.          (f)  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.