Bill Text: TX HB4641 | 2023-2024 | 88th Legislature | Engrossed
Bill Title: Relating to the collection of consumer debt incurred by certain individuals as a result of identity theft.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2023-05-16 - Referred to Business & Commerce [HB4641 Detail]
Download: Texas-2023-HB4641-Engrossed.html
| 88R18894 MLH-F | ||
| By: Meyer, Plesa | H.B. No. 4641 | |
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| 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: | ||
| (1) "Family violence" has the meaning assigned by | ||
| Section 71.004, Family Code. | ||
| (2) "Human trafficking" means conduct that | ||
| constitutes an offense under Section 20A.02, Penal Code. | ||
| (3) "Identity theft" means: | ||
| (A) a violation of Section 521.051, Business & | ||
| Commerce Code, or a substantially similar federal law or law in | ||
| another state; or | ||
| (B) a criminal offense described by Section | ||
| 32.51, Penal Code, or a substantially similar federal law or law in | ||
| another state. | ||
| (4) "Person with a disability" has the meaning | ||
| assigned by Section 48.002, Human Resources Code. | ||
| (b) This section does not apply to consumer debt that is a | ||
| home loan, as defined by Chapter 343. | ||
| (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 if the consumer provides: | ||
| (1) a criminal complaint alleging the commission of an | ||
| offense under Section 32.51, Penal Code, or a substantially similar | ||
| federal law or law in another state, for which the consumer was a | ||
| victim, accompanied by a statement identifying the consumer debt or | ||
| the portion of consumer debt that resulted from the offense; | ||
| (2) 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 | ||
| (3) if the consumer is a victim of family violence, a | ||
| victim of human trafficking, or a person with a disability, an | ||
| affidavit or unsworn declaration under Chapter 132, Civil Practice | ||
| and Remedies Code, declaring the consumer a victim of identity | ||
| theft. | ||
| (d) An affidavit or unsworn declaration under Subsection | ||
| (c)(3) must include: | ||
| (1) a statement that the consumer is a victim of | ||
| identity theft; | ||
| (2) documentation verifying the consumer's identity, | ||
| which may include a copy of the consumer's passport or a copy of a | ||
| driver's license or state identification card issued to the | ||
| consumer by the Department of Public Safety; | ||
| (3) 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; | ||
| and | ||
| (4) supporting documentation that the consumer is: | ||
| (A) a victim of family violence, as demonstrated | ||
| by: | ||
| (i) a copy of one or more of the following | ||
| orders protecting the tenant or an occupant from family violence: | ||
| (a) a temporary ex parte order issued | ||
| under Chapter 83, Family Code; | ||
| (b) a protective order issued under | ||
| Chapter 85, Family Code; or | ||
| (c) an order of emergency protection | ||
| under Article 17.292, Code of Criminal Procedure; or | ||
| (ii) a copy of documentation of the family | ||
| violence against the tenant or an occupant from: | ||
| (a) a licensed health care services | ||
| provider who examined the victim; | ||
| (b) a licensed mental health services | ||
| provider who examined or evaluated the victim; or | ||
| (c) an advocate as defined by Section | ||
| 93.001, Family Code, who assisted the victim; | ||
| (B) a victim of human trafficking, as | ||
| demonstrated by: | ||
| (i) a determination from a federal, state, | ||
| or tribal governmental entity; | ||
| (ii) a determination from a nongovernmental | ||
| organization authorized to make a determination that a consumer is | ||
| a victim of human trafficking by a governmental entity under | ||
| Subparagraph (i); | ||
| (iii) a determination from members of a | ||
| human trafficking task force, including a victim service provider | ||
| affiliated with a nongovernmental organization or task force that | ||
| is authorized to make a determination that a consumer is a victim of | ||
| human trafficking by a governmental entity described by | ||
| Subparagraph (i); | ||
| (iv) a determination that the consumer is a | ||
| victim of human trafficking from a court of competent jurisdiction | ||
| in a case where the issue of whether the consumer is a victim of | ||
| human trafficking is a central issue of the case; or | ||
| (v) a statement attesting that the consumer | ||
| is a victim of human trafficking, signed or certified by the | ||
| consumer and a person described by Subparagraph (i), (ii), (iii), | ||
| or (iv); or | ||
| (C) a person with a disability. | ||
| (e) 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 collectable from the victim of | ||
| identity theft; | ||
| (3) may not sell the debt or transfer it for | ||
| consideration, except to collect the debt 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. | ||
| (f) 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, unless the | ||
| alleged perpetrator of identity theft is named in documentation | ||
| provided by the consumer under Subsection (c). | ||
| (g) In a suit under Subsection (f), the creditor, debt | ||
| collector, or third-party debt collector must: | ||
| (1) show by clear and convincing evidence that the | ||
| consumer is not a victim of identity theft; and | ||
| (2) if the consumer prevails in the suit, pay the | ||
| consumer's court costs, attorney's fees, and damages. | ||
| SECTION 2. This Act takes effect September 1, 2023. | ||
