SB 2902

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
(2)  a criminal offense described by Section 32.51,
Penal Code, or a substantially similar federal law or law in another
(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
(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
(2)  a copy of a Federal Trade Commission identity
theft victim's report, completed, signed, and filed by the
(A)  affirming that the consumer is a victim of
(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
(1)  shall immediately cease efforts to collect the
disputed debt or disputed portion of the debt from the victim of
(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
(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
(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.