Under the Rules of Civil Procedure this is sufficient to put all matters in issue. (4) intentionally representing to a person that the agency is a governmental agency authorized to enforce a child support obligation. (c) The surety bond must be filed with and held by the department. In Texas, wage garnishment is prohibited by the Texas Constitution except for a few kinds of debt: child support, spousal support, student loans, or unpaid taxes. The OCCC frequently receives questions and complaints from consumers about the negative debt collection practices they experience. (b) This chapter does not affect or alter a remedy at law or in equity otherwise available to an obligor, obligee, governmental entity, or other legal entity. Personal, family, and household debts are covered under the Fair Debt Collection Practices Act. (e) On completion by the third-party debt collector of the investigation, the third-party debt collector shall inform the individual of the determination of whether the item is accurate or inaccurate. (1) injunctive relief to prevent or restrain a violation of this chapter; and. (5) “Debt collection” means an action, conduct, or practice in collecting, or in soliciting for collection, consumer debts that are due or alleged to be due a creditor. This one is complicated. Amended by Acts 2003, 78th Leg., ch. (a) The department shall issue a certificate of registration and mail the certificate to the applicant on receipt of: (3) the surety bond or deposit of money required by Section 396.105; and. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Texas law addresses actions taken by anyone trying to collect on a consumer debt. Medical Debt in Texas. (2) “Consumer debt” means an obligation, or an alleged obligation, primarily for personal, family, or household purposes and arising from a … Home » State Laws Fair Debt Collection Practices » Texas Fair Debt Collection Practices Act. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. (b) A hearing under this section or Section 396.301 is subject to Chapter 2001, Government Code. To learn more about Texas debt collection practices or tips on how to repair a credit report from a Houston bankruptcy attorney, log onto www.busby-lee.com. (c) The department may appoint a hearings officer to conduct the investigation. If you live in Texas and are concerned about paying your unsecured debt, you should know about your rights and obligations under Texas Law. Acts 1997, 75th Leg., ch. Texas Debt Statistics. (FTC page in Spanish). (2) the status of the agency’s authorization in the other state. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed. Commercial-Debt Collection Statutes for TEXAS: TEXAS-Definitions. 1023, § 73, eff. (a) After notice and hearing, the department may revoke the registration of a registered agency that: (1) fails to comply with this chapter or a rule adopted under this chapter; (2) does not pay a fee or other charge imposed by the department under this chapter; and. (g) The department shall provide for an annual public inspection of an investigation report of a complaint filed under this section. Wage garnishment is something that people commonly think of as a way for debt collectors to take the money that they owe. Debt collection in Texas Not being able to pay your debt is stressful, but that doesn’t mean you’re entirely at the mercy of your creditors. If the charges for debtors located in Texas are not separately stated from the charges for debtors located out-of-state, your client may give you an exemption certificate claiming multi-state benefit. 851, § 2, eff. In debt collection, a debt collector may not oppress, harass, or abuse a person by: (1) using profane or obscene language or language intended to abuse unreasonably the hearer or reader; (2) placing telephone calls without disclosing the name of the individual making the call and with the intent to annoy, harass, or threaten a person at the called number; (3) causing a person to incur a long distance telephone toll, telegram fee, or other charge by a medium of communication without first disclosing the name of the person making the communication; or. SUBCHAPTER B. SURETY BOND If the third-party debt collector determines that the information was accurate, the third-party debt collector may again report that information and resume collection efforts. Sept. 1, 1999. Texas law does not require answers to a lawsuit for debt collection to be made specifically under oath, so you can make a general denial of all issues. Examples of unlawful creditor behavior include excessive amounts of telephone calls to debtors, misrepresentation of the facts to third parties, threats of arrest, and illegal repossession. (b) A certificate of registration may be renewed for another three-year period as provided by department rule. THREATS OR COERCION. (3) fails to maintain and produce at the request of the department records attesting to the financial solvency of the registered agency or other business records concerning client accounts. Count all the calendar days including weekends and holidays. (a) A person commits an offense if the person violates this chapter. (ii) regularly contacts child support obligees or obligors for the purpose of child support enforcement; (B) a state agency designated to serve as the state’s Title IV-D agency in accordance with Part D, Title IV, Social Security Act (42 U.S.C. Texas Answer to Summons Forms Texas, like every other state in the United States, has statute of limitations and various other laws that help determine a deadline when it comes to filing a lawsuit or other civil actions. Except as otherwise provided by this chapter, a private child support enforcement agency must register with the department to engage in child support enforcement in this state. (a) To engage in business in this state, a foreign agency that is exempt from registration as prescribed by Section 396.102 may file an application with the department to operate under that authorization by filing: (1) the information required for an application for registration under Section 396.103; (2) a surety bond or deposit of money that meets the requirements of Section 396.105 unless the agency provides proof to the satisfaction of the department that the agency maintains in the state in which that agency has its principal office an adequate bond or similar instrument for purposes similar to the purposes required for the filing of a surety bond under Section 396.105; and. (4) “Foreign agency” means a private child support enforcement agency that engages in business in this state solely by use of telephone, mail, the Internet, facsimile transmission, or any other means of interstate communication. Third-party debt collectors include entities that engage in debt collection and/or sell collection system, device, or scheme forms. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. However, the federal law applies only to debt collectors working for designated debt collection agencies and professional lawyers hired for debt collection purposes. Acts 1997, 75th Leg., ch. Average Student Loan in Texas is about $31,000. (d) If the attorney general reasonably believes that a person is violating or is about to violate this chapter, the attorney general may bring an action in the name of this state against the person to restrain or enjoin the person from violating this chapter. Sometimes lenders contract with independent debt collection firms to manage their accounts. (e) A person who successfully maintains an action under this section for violation of Section 392.101, 392.202, or 392.301(a)(3) is entitled to not less than $100 for each violation of this chapter. 1008, § 1, eff. falsely imply that they are attorneys or government representatives falsely imply that you have committed a crime falsely represent that they operate or work for a credit bureau misrepresent the amount of your debt indicate that papers being sent to you are legal forms when they are not indicate that papers being sent to you are not legal forms when they are. (a) A registered agency that is located in another state or a private child support enforcement agency that engages in the business of child support enforcement in this state in violation of this chapter is considered to have submitted to the jurisdiction of the courts of this state with respect to an action brought under this chapter. The department shall require an applicant for registration or renewal of registration as a private child support enforcement agency to provide: (1) a certified financial statement demonstrating the financial solvency of the agency for which registration or renewal of registration is sought; and. (3) “Creditor” means a party, other than a consumer, to a transaction or alleged transaction involving one or more consumers. Sept. 1, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. Debt collectors cannot garnish wages for repayment of consumer debt. (8) “Registered agency” means a private child support enforcement agency, including a foreign agency, that is registered under this chapter. (3) collecting or attempting to collect an obligation under a check, draft, debit payment, or credit card payment, if: (A) the check or draft was dishonored or the debit payment or credit card payment was refused because the check or draft was not drawn or the payment was not made by a person authorized to use the applicable account; (B) the debt collector has received written notice from a person authorized to use the account that the check, draft, or payment was unauthorized; and. 851, § 1, eff. (a) In debt collection, a debt collector may not use threats, coercion, or attempts to coerce that employ any of the following practices: (1) using or threatening to use violence or other criminal means to cause harm to a person or property of a person; (2) accusing falsely or threatening to accuse falsely a person of fraud or any other crime; (3) representing or threatening to represent to any person other than the consumer that a consumer is wilfully refusing to pay a nondisputed consumer debt when the debt is in dispute and the consumer has notified in writing the debt collector of the dispute; (4) threatening to sell or assign to another the obligation of the consumer and falsely representing that the result of the sale or assignment would be that the consumer would lose a defense to the consumer debt or would be subject to illegal collection attempts; (5) threatening that the debtor will be arrested for nonpayment of a consumer debt without proper court proceedings; (6) threatening to file a charge, complaint, or criminal action against a debtor when the debtor has not violated a criminal law; (7) threatening that nonpayment of a consumer debt will result in the seizure, repossession, or sale of the person’s property without proper court proceedings; or. In enforcing a child support obligation, a registered agency or employee of the agency may not: (1) identify the registered agency by any name other than one by which the agency is registered with the department; (2) falsely represent the nature of the child support enforcement activities in which the agency is authorized by law to engage; or. (2) “Consumer debt” means an obligation, or an alleged obligation, primarily for personal, family, or household purposes and arising from a transaction or alleged transaction. Amended by Acts 1999, 76th Leg., ch. (c) The chief executive officer of the applicant agency shall state in a notarized statement that the application is accurate and truthful in all respects. A person may not use “credit bureau,” “retail merchants,” or “retail merchants association” in the person’s business or trade name unless: (1) the person is engaged in gathering, recording, and disseminating information, both favorable and unfavorable, relating to the creditworthiness, financial responsibility, and paying habits of, and similar information regarding, persons being considered for credit extension so that a prospective creditor can make a sound decision in the extension of credit; or. (1) issued by a surety authorized to do business in this state; (3) in favor of the state for the benefit of a person damaged by a violation of this chapter; and. Amended by Acts 2003, 78th Leg., ch. This is the state’s version of the FDCPA, which also protects consumers from illegal debt collection. A copy of the bond must be filed with the secretary of state. This agency has no regulatory authority over these third-party collectors. (2) immediately cease collection efforts related to the portion of the debt that was found to be inaccurate and on correction of the item send, to each person who has previously received a report from the third-party debt collector containing the inaccurate information, notice of the inaccuracy and a copy of an accurate report. Amended by: Acts 2005, 79th Leg., Ch. (1) “Consumer” means an individual who has a consumer debt. The squeaky wheel gets the most grease. (B) that the communication is from a debt collector, if the communication is a subsequent written or oral communication between the third-party debt collector and the debtor; (6) using a written communication that fails to indicate clearly the name of the debt collector and the debt collector’s street address or post office box and telephone number if the written notice refers to a delinquent consumer debt; (7) using a written communication that demands a response to a place other than the debt collector’s or creditor’s street address or post office box; (8) misrepresenting the character, extent, or amount of a consumer debt, or misrepresenting the consumer debt’s status in a judicial or governmental proceeding; (9) representing falsely that a debt collector is vouched for, bonded by, or affiliated with, or is an instrumentality, agent, or official of, this state or an agency of federal, state, or local government; (10) using, distributing, or selling a written communication that simulates or is represented falsely to be a document authorized, issued, or approved by a court, an official, a governmental agency, or any other governmental authority or that creates a false impression about the communication’s source, authorization, or approval; (11) using a seal, insignia, or design that simulates that of a governmental agency; (12) representing that a consumer debt may be increased by the addition of attorney’s fees, investigation fees, service fees, or other charges if a written contract or statute does not authorize the additional fees or charges; (13) representing that a consumer debt will definitely be increased by the addition of attorney’s fees, investigation fees, service fees, or other charges if the award of the fees or charges is subject to judicial discretion; (14) representing falsely the status or nature of the services rendered by the debt collector or the debt collector’s business; (15) using a written communication that violates the United States postal laws and regulations; (16) using a communication that purports to be from an attorney or law firm if it is not; (17) representing that a consumer debt is being collected by an attorney if it is not; (18) representing that a consumer debt is being collected by an independent, bona fide organization engaged in the business of collecting past due accounts when the debt is being collected by a subterfuge organization under the control and direction of the person who is owed the debt; or. 1008, § 1, eff. 1008, § 1, eff. (2) the person is a nonprofit retail trade association that: (B) qualifies as a bona fide business league as defined by the United States Internal Revenue Service; and. (3) a copy of the license or other authorization issued by the state in which that agency is authorized to operate. For example, debt collectors may not: Call the consumer assistance helpline at (800) 538-1579 or send the OCCC an e-mail. (c) On a finding by a court that an action under this section was brought in bad faith or for purposes of harassment, the court shall award the defendant attorney’s fees reasonably related to the work performed and costs. Texas also limits … (a) A violation of this chapter is a deceptive trade practice under Subchapter E, Chapter 17, Business & Commerce Code, and is actionable under that subchapter. Texas Commercial Collection Agency. (b) If a single application is used to register more than one registered location, the department shall: (1) issue a certificate of registration for each registered location; and. (1) “Child support enforcement” means an action, conduct, or practice in enforcing, or in soliciting for enforcement, a child support obligation, including the collection of an amount owed under a child support obligation. The keys to collecting are patience, consistency and persistence. (a) The department may waive any prerequisite to obtaining a registration for a foreign agency: (1) after reviewing the applicant’s credentials and determining that the applicant holds a valid registration or other authorization from another state whose requirements are substantially equivalent to those imposed under this chapter; or. According to the Urban Institute, more than 44 percent of Texans with credit files had non-mortgage debt in debt collection; and from September 2013 until August 2014, more than 147,000 cases were filed in Texas trial courts to collect some form of debt. (b) Subsection (a) does not prevent a debt collector from: (1) informing a debtor that the debtor may be arrested after proper court proceedings if the debtor has violated a criminal law of this state; (2) threatening to institute civil lawsuits or other judicial proceedings to collect a consumer debt; or. (b) Subsection (a) does not prevent a registered agency from: (1) informing an obligor that the obligor may be subject to penalties prescribed by law for failure to pay a child support obligation; or. Debt collectors may report the debt to credit reporting companies or sue a debtor in the court. (a) An individual who disputes the accuracy of an item that is in a third-party debt collector’s or credit bureau’s file on the individual and that relates to a debt being collected by the third-party debt collector may notify in writing the third-party debt collector of the inaccuracy. A holder of a certificate issued under this subchapter may not engage in business in this state as a private child support enforcement agency if another state has revoked or withdrawn the person’s authority to operate as a private child support enforcement agency in that state unless the department grants the agency a registration under this chapter. A debt collection lawyer will negotiate on your behalf. A debt collection attorney works with both people seeking to collect debts and those defending themselves against debt collectors. Texas Fair Debt Collection Practices Act Many creditors and debt collectors will call constantly, at any number where you might be reached, including your workplace, in order to get you to pay a debt. Debt can impact you in many ways. The aggregate liability of the surety to all persons damaged by a violation of this chapter may not exceed the amount of the bond. SUBCHAPTER B. SURETY BOND. Like the federal law, the Texas law prohibits harassing communications, disclosure of the alleged debt to third parties, threats of violence or harm, obscene or profane language, and misleading or deceptive tactics. Texas Finance Code, Chapter 392 The Texas debt collection law can be found in Chapter 392 of the Texas Finance Code. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts. By providing your wireless telephone number you agree and acknowledge that we may send text messages to your wireless telephone number for any purpose, including following up on your inquiry and request for review, or for what you may consider to be marketing purposes. Added by Acts 2001, 77th Leg., ch. (4) the department verifies that the registration or other authorization issued by another state is active and in good standing. Sept. 1, 2003. 25 most frequently asked questions about debt collection agencies. The TDCA defines a “creditor” as a “party, other than a consumer, to a transaction or alleged transaction involving one or more consumers. However, submitting this form does not establish an attorney/client relationship with our firm– that will be established only upon mutual agreement and execution of an attorney client contract. (a) In enforcing a child support obligation, a registered agency may not use threats, coercion, or attempts to coerce that employ any of the following practices: (1) using or threatening to use violence or other criminal means to cause harm to an obligor or property of the obligor; (2) accusing falsely or threatening to accuse falsely an obligor of a violation of state or federal child support laws; (3) taking or threatening to take an enforcement action against an obligor that is not authorized by law; or. Acts 1997, 75th Leg., ch. The average mortgage debt in Texas is $177K in 2018. A debt collector is any person who regularly attempts to collect debts owed to themselves or others; included in this definition are attorneys who collect debts on a regular basis. You have rights, and you can protect yourself from unfair or harassing debt collection tactics. The Federal Trade Commission provides an excellent source of detailed information on its fair debt collection page; most of the text from that page is presented here for your convenience. Debt Col­lec­tion and Relief. Section 651 et seq. The federal Fair Debt Collection Practices Act (FDCPA) protects debtors from harassment, threats, and unfair means of debt collection by debt collectors. If you have an attorney, the debt collector must contact the attorney, rather than you. 62, § 7.42, eff. The third-party debt collector shall make a written record of the dispute. (d) Subsection (a)(7) does not require a response to the address of an employee of a debt collector. (a) In debt collection, a debt collector may not use threats, coercion, or attempts to coerce that employ any of the following practices: (1) using or threatening to use violence or other criminal means to cause harm to a person or property of a person; (B) regularly make contact with debtors for the purpose of collection or adjustment of debts. If you have a complaint about a professional agency or a third-party debt collector, you may wish to call the Texas Attorney General's Consumer Protection Helpline at 800.621.0508. If a debt collector has violated the FDCPA or the Texas Fair Debt Collection Practices Act, an attorney can help you get back on track and pursue damages up to $1,000 per violation from the offending debt collector. The Texas Debt Collection Act is another tool in a consumer’s arsenal to fight abusive, or harassing debt collection practices. (b) A foreign agency engaging in business in this state in violation of this chapter is considered to have appointed the department as the agency’s agent for service of process in any action, suit, or proceeding arising from a violation of this chapter. Debt collectors are regulated by the Texas Debt Collection Act. If the third-party debt collector does not report information related to the dispute to a credit bureau, the third-party debt collector shall cease collection efforts until an investigation of the dispute described by Subsections (b)-(e) determines the accurate amount of the debt, if any. Fin. A collector may contact you in person, by mail, telephone, telegram, or fax. This section does not affect the appcation of Chapter 20, Business & Commerce Code, to a third-party debt collector subject to that chapter. State Laws Fair Debt Collection Practices. Unsecured Debt Laws in Texas. Section 1692a(6), but does not include an attorney collecting a debt as an attorney on behalf of and in the name of a client unless the attorney has nonattorney employees who: (A) are regularly engaged to solicit debts for collection; or. (2) the name under which the applicant is doing or intends to do business in this state, if different from the applicant’s name; (3) the address of the applicant’s principal business office, including the state, municipality, and numeric street address; and. (4) conditioned on the private child support enforcement agency’s compliance with this chapter and the faithful performance of the obligations under the agency’s agreements with its clients. A collector may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money. A certificate holder shall notify the department of any material change in the information provided in an application for registration not later than the 60th day after the date on which the information changes. collect your debt.This Debt Collection site is here to get you the information that you need to collect on your bad debt. A registered agency does not violate this chapter if the action complained of resulted from a bona fide error that occurred notwithstanding the use of reasonable procedures to avoid the error. Collectors usually are prohibited from contacting such third parties more than once. (5) “Obligee” means the person identified in an order for child support issued by a court or other tribunal as the payee to whom an obligor’s amounts of ordered child support are due. Section 392.101 of the Texas Finance Code prohibits a third-party debt collector or credit bureau from engaging in debt collection in Texas unless the third-party debt collector or credit bureau has obtained a surety bond and filed a copy of the bond with the Office of the Secretary of State. (b) This chapter does not affect or alter a remedy at law or in equity otherwise available to a debtor, creditor, governmental entity, or other legal entity. In Texas, any entity acting as third-party debt collector or a credit bureau is required to file a Collection Agency Bond application with the state. 71 million Americans have debts that are currently in collection. 3, § 28.01, eff. (a) The department shall administer this chapter. What Debt Collectors Can’t Do. The average person in Texas carries over $38,000 in debt. In county/district court, the answer is due at 10 a.m. on the Monday following 20 days from when you were served. (B) the date on which each amount due the client by the obligor was paid to the client; (3) a copy of the order establishing the child support obligation under which a collection was made by the agency; and. (b) A person who successfully maintains an action under Subsection (a) is entitled to attorney’s fees reasonably related to the amount of work performed and costs. (b) Not later than the 30th day after the date a notice of inaccuracy is received, a third-party debt collector who initiates an investigation shall send a written statement to the individual: (3) stating that the third-party debt collector has not had sufficient time to complete an investigation of the inaccuracy. (7) “Third-party debt collector” means a debt collector, as defined by 15 U.S.C. (3) exercising or threatening to exercise a statutory or contractual right of seizure, repossession, or sale that does not require court proceedings. Among other things, the Act prohibits debt collectors from: Using abusive collection tactics, including: threatening violence or other criminal acts; using profane or obscene language; falsely accusing the consumer of fraud or other crimes