Bill > HB1471

This bill establishes new protections for consumers who are victims of identity theft related to debt, defining "identity theft debt" as any part of a debt incurred by someone other than the authorized person. It allows a consumer to formally notify a "creditor" (defined as anyone claiming to own or collect a debt, including debt collectors) that a debt is identity theft debt, by sending certified mail or using a method sufficient for legal service, along with supporting "evidence" such as police reports or FTC identity theft reports. Upon receiving this notice, the creditor must immediately stop collection activities for at least 10 days and conduct a thorough investigation within 30 days, considering both the consumer's evidence and their own records. If the debt is confirmed as identity theft debt, the creditor must permanently stop all collection efforts, dismiss any lawsuits, terminate contracts with debt collectors, and notify credit reporting agencies to delete or modify records. If the debt is not deemed identity theft debt, the creditor must inform the consumer in writing, explaining their reasoning and providing supporting documentation. Consumers can file a civil lawsuit if they believe a debt is identity theft debt or if a creditor violates these provisions, and they have the right to demand a jury trial, though they cannot file suit during the initial 30-day investigation period. If a consumer prevails in court, they can receive a judgment declaring the debt as identity theft debt, an injunction preventing the creditor from pursuing the debt, damages, court costs, and attorney's fees, with double damages available if the creditor knowingly violated the law. The bill also clarifies that time limits for debt collection are paused during these proceedings and that consumers cannot waive these new protections.

Justice

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1471?ys=2026RS