Relating to the collection of consumer debt incurred by certain individuals as a result of identity theft.

HB 4238 prevents creditors and debt collectors from attempting to collect debts from individuals who are victims of identity theft, as verified by a court order. It requires these entities to stop collection efforts within seven business days of receiving proof of identity theft, stop reporting the debt to credit bureaus, and not sell the debt to third parties. The law does not apply to home loans or existing court judgments. This directly affects identity theft victims (who can halt debt collection) and debt collectors (who must comply with these restrictions), effective September 1, 2025.