Laws Addressing Identity Theft

Most people assume that identity theft is handled entirely by law enforcement. While police reports are an important part of the process, the legal framework surrounding identity theft goes much further than criminal charges. Both Texas and federal law give victims specific rights that can be used to correct fraudulent records and pursue compensation from the parties that failed to protect their information.

Learning about which laws apply to your situation is important because different statutes address different parts of the problem. Some focus on holding the thief accountable, while others place obligations on the entities that handle your personal data. Knowing where those responsibilities fall can help you take the right steps early and avoid losing time on the wrong ones.

Texas Criminal and Civil Identity Theft Laws

Texas Penal Code § 32.51 makes it a crime to “obtain, possess, transfer, or use” another person’s identifying information without their consent and with the “intent to harm or defraud.” The severity of the charge depends on the number of victims in question:

• Fewer than five victims is classified as a state jail felony
• Five to ten victims elevates the charge to a third-degree felony
• Ten to fifty victims is a second-degree felony
• More than fifty victims can result in a first-degree felony charge

On the civil side, the Texas Identity Theft Enforcement and Protection Act (Chapter 521 of the Texas Business and Commerce Code) requires businesses to implement reasonable procedures to protect consumer data. Texas also allows identity theft victims to obtain a court order declaring their status as a victim, which can be submitted to businesses and government agencies to help correct records that contain fraudulent information.

Federal Laws That Protect Identity Theft Victims

Several federal statutes work alongside Texas law to give victims additional tools:

• The Fair Credit Reporting Act (FCRA) allows victims to dispute fraudulent accounts on their credit reports, place fraud alerts or security freezes, and request that credit bureaus block identity theft-related information from their files
• The Fair Credit Billing Act (FCBA) caps your liability for unauthorized credit card charges at $50 and requires card issuers to investigate billing disputes within a specific timeframe
• The Electronic Fund Transfer Act (EFTA) protects against unauthorized debit card and electronic banking transactions, with liability that depends on how quickly the fraud is reported
• The Fair Debt Collection Practices Act (FDCPA) prohibits collectors from pursuing debts that resulted from identity theft after the consumer has disputed them

If any of these institutions fail to follow the procedures the law requires, you as the victim may have grounds to file a lawsuit and seek damages.

Call Sharmin & Sharmin, P.A. for Help if You Are the Victim of Identity Theft in Texas

Identity theft creates problems that can touch multiple aspects of your life at once. Various federal and state laws exist to give you a way to push back, but navigating them on your own while the damage is still unfolding is not something anyone should have to do.

Schedule a free consultation with Sharmin & Sharmin, P.A. today at 1-844-Sharmin to learn about your best course of action going forward. Our attorneys have 20+ years of experience helping clients with identity theft cases and will work just as hard for you from the start.