A new bill aimed at protecting victims of identity theft took center stage during the Texas Senate Committee on Business and Commerce meeting on May 13, 2025. The proposed legislation, House Bill 4238, seeks to address the challenges faced by consumers who have fallen victim to identity theft, particularly in disputing fraudulent debts that can linger long after abusive situations.

Senator Dean highlighted the bill's intent to empower victims by limiting the negative impacts of coerced debts. "This bill would enable victims to limit the harmful fallout from coerced debts that linger long after leaving an abusive relationship or situation," he stated. The legislation aims to redefine identity theft under specific sections of the business and commerce code and includes provisions that would prohibit creditors and debt collectors from pursuing debts if a consumer provides a court order confirming their victim status.

Key features of the bill include a requirement for creditors to notify all parties involved when a debt is disputed and a timeline of seven business days for debt collectors to cease collection activities upon receiving such notification. The committee discussed amendments that would refine the bill, including the removal of a section that had raised concerns among committee members.

Public testimony was opened, with experts like Angela Litwin, a law professor, and Molly Woles Wallace from the Texas Council on Family Violence, invited to share their insights on the bill's implications. The committee decided not to vote on the bill during this session, allowing further review and discussion.

This legislation represents a significant step toward safeguarding the rights of identity theft victims in Texas, aiming to provide them with the necessary tools to combat the financial repercussions of their experiences. As discussions continue, the committee's focus remains on ensuring that the bill effectively addresses the needs of those affected.