Texas Senate discusses Bill 2902 to combat coerced debt linked to identity theft

The Senate Committee on Business and Commerce convened on April 10, 2025, to discuss Senate Bill 2902, which addresses the collection of consumer debt incurred through identity theft, particularly in cases of coerced debt linked to domestic violence. This bill is a refile of Senate Bill 836 from 2023 and aims to provide legal protections for victims of identity theft who are often left vulnerable by abusive partners.

The meeting began with an introduction to the bill by its sponsor, who highlighted the growing prevalence of coerced debt—where abusers use victims' identities to incur debts without their consent. This form of economic abuse can severely impact victims' credit scores, making it difficult for them to secure employment, housing, or insurance. The bill seeks to define identity theft more comprehensively and establish clear guidelines for victims to dispute fraudulent debts.

Key provisions of Senate Bill 2902 include prohibiting creditors and debt collectors from pursuing debts from victims of identity theft if they present a court order or a Federal Trade Commission (FTC) identity theft report. Additionally, the bill mandates that all parties involved in the debt must be notified when a dispute arises, ensuring that victims are not further victimized by collection efforts.

Public testimony was heard from several advocates, including Angela Litwin, a law professor, and Lauren Duveros from the Texas Council on Family Violence. Litwin emphasized the need for additional documentation options, such as police reports, to verify claims of identity theft, arguing that this would not increase fraud but rather provide necessary support for victims. Duveros echoed this sentiment, highlighting the bill's potential to empower survivors by clarifying their rights and responsibilities regarding fraudulent debts.

The committee engaged in discussions about the safeguards within the bill to ensure that only genuine victims of identity theft are protected. Testimonies underscored the importance of maintaining rigorous standards for proof, such as court orders and FTC reports, to prevent misuse of the legislation.

Overall, Senate Bill 2902 represents a significant step forward in addressing the intersection of economic abuse and identity theft, reinforcing Texas's commitment to supporting victims of domestic violence. The committee is expected to deliberate further on the bill, with advocates urging prompt action to enhance protections for those affected by coerced debt.