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Bill

HB 5377

Relating to the filing of a fraudulent financing statement in relation to certain secured transactions; authorizing the imposition of a fee.

89th Legislature (2025) Introduced by Stan Lambert

Texas bill authorizing fees to address fraudulent UCC financing statement filings that criminally target individuals and businesses with fake liens.

Reported favorably as substituted
#business&commerce--general(i0050) #civilremedies&liabilities(i0065) #courts--district(i0120) #fraud(s0166) #financial--general(i0365) #secretaryofstate(v0042)
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Bill Summary · HB 5377

Legislative bill overview

HB 5377 addresses the filing of fraudulent financing statements in secured transactions under Texas law. The bill authorizes the imposition of fees related to combating this fraudulent filing practice, which involves criminals filing false Uniform Commercial Code (UCC) liens against individuals or businesses to damage their credit or extort money.

Why is this important

Fraudulent UCC filings have become an increasingly common scam affecting both individuals and businesses, making it difficult to obtain loans or conduct transactions. By authorizing fees, the bill likely aims to fund enforcement mechanisms, victim remedies, or administrative costs associated with addressing this growing problem that harms Texans' financial security.

Potential points of contention

  • Fee structure uncertainty: The bill authorizes fees but doesn't specify their amount, who pays them, or how revenue will be allocated, raising questions about cost distribution and effectiveness
  • Remedial adequacy: Critics may argue that fees alone don't sufficiently address victim compensation or whether enforcement resources are adequate to tackle the problem
  • Definitional clarity: Questions about what constitutes a "fraudulent financing statement" and whether the definition is broad enough to capture evolving scam tactics while remaining narrow enough to avoid misuse

Compiled from official sources — confirm details with the bill’s official record.

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