Dena Standley | October 31, 2023
Edited by Hannah Locklear
Summary: Texas debt collection laws ensure consumers receive fair and just treatment. If debt collectors violate their rights, consumers can take legal action against them to stop their calls or win their debt collection case. Learn more in this article.
Texas debt collection laws have been implemented to control the debt collection process and ensure creditors do not abuse consumers or use deceptive practices. When consumers ignore a creditor's attempt to collect their money, they resort to unlawful ways to increase their chances of making payments.
Therefore, Texans can use their state and federal laws to fight back and ensure fair and just treatment. These rules and regulations explain how debt collectors should communicate with consumers, disclose any debt-related information, and respond to various legal documents.
Below, we will break down these laws to help you know your rights and beat debt collectors in Texas.
Texas uses the Texas Debt Collection Practices Act to protect consumers from debt collectors using bad business practices. The most important regulations for debtors are contained in Title 5 Chapter 392 subchapter D, which bears the title Prohibited Debt Collection Methods. Below are the specific debt collection laws outlined in this subchapter.
In their attempt to collect a debt, section TX Fin Code § 392.301 cautions debt collectors against using threats and coercion carried out in the following ways:
According to TX Fin Code § 392.302, a debt collector should not harass, abuse, or oppress a consumer. Examples of this behavior are:
In Texas, consumers are protected from unfair debt collectors and those who use questionable ways to force them to make payments. Section TX Fin Code § 392.303 outlines that creditors should not use the following unethical and unfair practices:
Here is an example to illustrate our point.
Example: Stacy owes $700 to Gradit Credits, who pressured her to make payments. She wrote a check to pay off the debt, but it bounced. Gradit Credits then sold the debt to Discovery Collections. DC contacted Stacy to demand the $700 and added $50 for the dishonored check charges. Stacy took legal action against DC because they had violated the law by using unfair and unethical means to collect.
TX Fin Code § 392.304 states that debt collectors cannot use the following bad business practices when attempting to collect a debt from you:
In addition to Texas state laws, consumers can use federal laws under the Federal Debt Collection Practices Act to protect themselves or take action against debt collectors. Texas borrows heavily from these laws, and the FDCPA emphasizes using state laws.
After knowing your consumer rights, you can confidently take action against a debt collector when they violate your rights. Follow these steps to improve your chances of achieving your goal:
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