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Texas Collection Laws

The Texas Debt Collection Act protects Texas residents from original creditors such as mortgage companies, credit card companies, auto loans, medical bills, and utility bills. Texas consumers can get damages of $100.00 for each violation. Plus, the Texas Debt Collection Act also has a fee-shift provision. So, you won’t pay us a penny for our fees or costs for our help stopping original creditor harassment. When we work on original creditor harassment cases, often times (depending on the amount of the debt) we’re able to get the underlying debt waived and your credit report updated.

Fair Debt Collection Practices Act (FDCPA):

The FDCPA has been around since 1977. The FDCPA is a federal law that applies to every state. In other words, everyone is protected by the FDCPA. The FDCPA is essentially a laundry list of what debt collectors can and cannot do while collecting a debt, as well as things debt collectors must do while collecting a debt.

  • Damages:If a collection agency violates any section of the FDCPA, the consumer is entitled to damages up to $1,000.00. Additional damages are warranted in cases where the collector’s collection activities were so egregious the consumer suffered emotional distress. 99% of cases do not involve emotional distress damages.

  • Attorney’s fees: The FDCPA has a fee-shift provision. This means, the collection agency pays the consumer’s attorney’s fees and costs.

  • Debt that is covered by the FDCPA: Only consumer debt, such as personal, family, and household debts. For example, money you owe on a personal credit card, an auto loan, a medical bill, or a utility bill. The FDCPA does not cover debts you incurred to run a business, debts regarding unpaid taxes, or traffic tickets.

  • The FDCPA only applies to 3rd-party debt collectors: The FDCPA defines a debt collector as any person who regularly collects, or attempts to collect, consumer debts for another person or institution. In short, only third-party debt collectors are bound by the FDCPA. That is, original creditors, such as credit card companies and banks are not bound by the FDCPA.

Top FDCPA Violations:

  1. Communicated (phone or letter) with you after you filed for bankruptcy.
  2. Communicated (phone or letter) with you after you told the collector you have a lawyer.
  3. Called you about a debt you do not owe after you informed the collector you do not owe the debt.
  4. Called you at work after you told them you cannot receive such calls at work.
  5. Left you a message without identifying the company’s name.
  6. Left you a message without disclosing that the call is from a debt collector.
  7. Called third parties (family, friends, coworkers, or neighbors) even though the collection agency knows your contact information.
  8. Disclosed to a third party (family, friends, coworkers, or neighbors) that you owe a debt.
  9. Contacted you after you told the collection agency, in writing, to stop contacting you.
  10. Threatened you with legal action (such as a lawsuit or wage garnishment) even though the collection agency does not intend to follow through with its threat.
  11. Called you before 8:00 AM or after 9:00 PM.
  12. Continued to call you after you have told the collector you cannot pay the debt.

Telephone Consumer Protection Act (TCPA):

Have you ever received a phone call from an unknown but local phone number? Chances are you have, most everyone of us has, and when you answered the call you were greeted with silence or some pre-recorded message. After a few awkward seconds and repeating yourself to be removed the list, you hang up frustrated by another robot calling your phone. What do they really want, and why don’t they ever stop calling?

Fortunately for consumers, the TCPA, limits the use of automatic dialing systems, prerecorded voice messages, and unsolicited text messages. Passed in 1991, the TCPA allows for damages ranging from $500.00 – $1,500.00 per call or text. In describing the importance of the TCPA, Senator Hollings, the TCPA’s sponsor, said, “I echo Supreme Court Justice Louis Brandeis, who wrote 100 years ago that ‘the right to be left alone is the most comprehensive of rights and the one most valued by civilized man.’”

If a company has your permission to place robocalls to you, you can revoke your consent. If robocalls continue after the consumer says stop calling, the consumer has a TCPA case.

Electronic Fund Transfer Act (EFTA):

The EFTA protects electronic payments that are deducted from bank accounts. If a company took unauthorized deductions from your bank account, you may have an EFTA claim. Most collection agencies want to set up re-occurring payments from consumers. Imagine how much money collection agencies gets if hundreds, if not thousands, of consumers electronically pay them $50-$100, or more, per month. If you a consumer agreed to this type of re-occurring payment, the company must follow certain steps to comply with the EFTA. The EFTA allows for statutory damages up to $1,000.00 and actual damages for the payments made. The EFTA also has a fee-shift provision. This means, the company pays the consumer’s attorney’s fees and costs.

Fair Credit Reporting Act (FCRA):

The FCRA works to ensure that no information reported to your credit report is false. In essence, it gives you the right to dispute those inaccuracies that you find on your credit report. Are you one of the 40 million Americans that have a mistake on their credit report? Mistakes on your credit report can be very costly. Along with causing you to pay higher interest rates, you may be denied credit, insurance, a rental home, a loan, or even a job because of these mistakes. Some mistakes may include someone else’s information on your credit report, inaccurate public records, stale collection accounts, or maybe you were a victim of identity theft. If a credit reporting agency violates its obligations under the FCRA, you may be entitled to statutory damages up to $1,000.00, plus the credit reporting agency will be required to fix the error. The FCRA also has a fee-shift provision. This means, the credit reporting agency pays the consumer’s attorney’s fees and costs.

Under the FCRA, you have a legal right to dispute and remove inaccurate information from your credit report. These inaccuracies come in three common forms:

  1. Wrong information – Untrue information such as criminal records, driving records, accounts you did not open, mixed or merged files with someone else’s information (such as a family member or someone with the same name), judgments for lawsuits which didn’t involve you, or debts you did not incur can be permanently removed from your credit report.

  2. Duplicate information – Some accounts or transactions may be listed more than once in your credit report, and it’s helpful to ensure that your report is duplicate-free to avoid appearing to have more debt or credit-related problems than you do.

  3. Old and negative information – Most types of outdated negative credit information, such as foreclosures, judgments, liens, lawsuits, and bankruptcy, can be removed after about seven years.

Submitted Comments

1 year ago
First investors is servicing my auto-loan from LendingClub. There was an issue with the title on the vehicle. I was told by the lender that by refinancing the loan I could remove my co-signer from the original loan and the title. However after months of being in the loan I had never received the need documents to provide to the state for new tags for the vehicle. I made several complaints by phone about this issue and no effort was made to resolve the issue till i stopped making payments. I was finally contacted and provided with a plan of resolution from the Lender and in good faith I started making payments again. However two months later the again they have not followed though with providing me with the info that I need to get the vehicle correctly registered in my name. So again I have stopped making payment. since I have been bombarded with robot-calls, calls from first investors harassing emails, they have even been sending people out to my home and talking to my neighbors, friends and family. telling people that I\'m behind on my auto-loan! all I wanted is to do was to follow the law and get my car registered in my name. Can you please get them to stop harassing me and talking to my family, friends and neighbors about my finances?
12 months ago
I have a harassing debt collection agency that has called me 2 xs. the first the guy doesn\'t say who he is or from who. just says he can serve me papers for a court case and also says he will come to my home or job and also garnish my wages left on voice mail.. the next call was today around 1:36 pm says he will sue me if I don\'t call back but no name or company name left on voice mail his # 1s 1-888-704-0250
5 months ago
ARA and associates have called my family and co-workers and disclosed to them that I have debt from a client of theirs even though they have my contact information. On 6/27/23 their senior paralegal contacted me and left messages without disclosing her agency\'s name or telling me that her call was an attempt to collect a debt. They told my coworkers and me they will sue me and garnish my wages. They threatened to continue to call my workplace and serve me with a warrant at my job.
4 months ago
My company was using Synchrony for merchant financing. In April 2023, they did an bank withdrawal for $6500 without permission or explanation. When I finally received an explanation, the person said it or a Care Credit debt from a medical practice I used to manage. The practice had been closed for 2 year due to the doctors death. Communication with their \"special client review\" have not help with the last emailing stating \"we would have to receive a subpoena before we could provide you with a copies. (contract)\". I feel there this is fraud because the companies are not related and in different states. Can you help?
3 months ago
a debt collector from Marathon Legal is threatening to serve me papers and take me to court. threatened to freeze my accounts, take my tax returns and put liens on my vehicles that I owe on. This debt is from 2010
3 weeks ago
Got an email/letter saying,\"Due to non-payment, your serviced by LendingPoint account has been assigned to the Pre-Legal department and is eligible to be referred to a law firm for a review of possible legal options by an attorney. I am willing to work with you on a discounted settlement or payment arrangement to prevent the possible legal review by an attorney but I need you to contact me. Please call me as soon as possible to discuss the available payment options... Loan is for a loan I got in 2020 during the pandemic and now im a student and I don\'t make enough to pay it back and ive told them this. I keep getting calls and letters like this and I am tired of it. I don\'t know what to do or if I am actually being sued. Today, I got a call from a supposed law firm saying \"good luck\", but I haven\'t actually been physically served something. Im so confused.
7 days ago
Williams and fudge will not stop harassing me and a 3rd party family member.
22 hours ago
I have a potential referral regarding Tesla Solar Panels.