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