Texas Debt Collection Laws: Know Your Rights as a Consumer
Texas provides strong consumer protections through the FDCPA and state law, which covers both original creditors and collection agencies. You have four years from the date of default before the statute of limitations expires, and you can fight back against illegal collection practices by filing complaints or lawsuits.
Answer Your LawsuitTexans have strong legal protections against aggressive debt collectors. Two major laws shield you from harassment and unfair practices. The federal Fair Debt Collection Practices Act (FDCPA) regulates third-party collectors. Texas state law goes further by covering both original creditors and collection agencies. The statute of limitations for consumer debts in Texas is four years.
What Are the Debt Collection Laws in Texas?
Two main laws protect you from abusive debt collection. The federal FDCPA and Chapter 392 of the Texas Finance Code work together. Texas law expands on federal protections in important ways.
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Respond to LawsuitHow Does the FDCPA Protect You?
The Fair Debt Collection Practices Act regulates third-party debt collectors. It increases transparency in the collection process.
Here are your major rights under the FDCPA:
- Debt collectors must send you written notice within five days of first contact
- You have 30 days to dispute the debt in writing
- You can request debt validation to verify the amount owed
- You can tell collectors to stop contacting you in writing
- Collectors can only contact you between 8 a.m. and 9 p.m.
Debt collectors cannot engage in these prohibited practices:
- Threaten violence or harm against you or your property
- Use obscene or profane language during communications
- Call repeatedly to harass or annoy you
- Lie about the debt amount or their identity
- Threaten legal action they cannot or will not take
- Contact your employer about the debt
- Discuss your debt with family, friends, or neighbors
How Does the Texas Finance Code Protect You?
Chapter 392 of the Texas Finance Code mirrors many FDCPA regulations. The major difference? State law also applies to original creditors, not just third-party collectors.
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Original creditors and debt collectors cannot:
- Use threats or coercion, like threatening jail time
- Harass you with repeated calls or profane language
- Add unauthorized fees to your debt
- Misrepresent their identity or the debt amount
- Fail to identify themselves as debt collectors
The law prevents creditors from hiring collection agencies that violate state law. It also stops collectors from trying to extend the statute of limitations.
Texas offers unique protection for old debts. The statute of limitations won’t restart if you acknowledge the debt. Making a partial payment won’t revive expired collection rights either.
What Is the Statute of Limitations for Debt Collection in Texas?
The statute of limitations limits how long collectors can sue you. After this period expires, collectors lose legal standing to pursue court action.
In Texas, the statute of limitations is four years for consumer debts. Credit cards, car loans, and medical debt all fall under this timeframe.
You can use an expired statute of limitations as a defense. If you’re sued for an old debt, this argument can get the case dismissed. Learn more in our guide to answering a summons in Texas.
If a collector contacts you about old debt, respond in writing. Tell them the statute of limitations has expired. Use a debt verification letter to contest the debt formally.
What You Can Do if a Debt Collector Breaks the Law
You have options if a collector violates state or federal law. You can file a complaint or pursue a lawsuit.
File a Complaint
Three organizations enforce consumer protection laws in Texas and nationally.
- File with the Texas Attorney General
- Submit a complaint to the Texas Office of Consumer Credit Commissioner
- Report to the Consumer Financial Protection Bureau
Reporting illegal behavior protects you and others. Your complaint can stop harassment and trigger enforcement actions. Authorities use reports to monitor problematic collectors.
File a Lawsuit
You can sue collectors who violate the FDCPA or Texas law. Lawsuits allow you to seek compensation for damages.
Under state law, you may recover actual damages. These include lost wages and unfair charges. You can also recover attorney fees and court costs.
FDCPA lawsuits offer additional remedies. You can claim actual damages plus up to $1,000 in statutory damages. Judges award statutory damages when they determine the law was broken.
What Are Debt Collectors Allowed To Do in Texas?
Collectors typically start by contacting you directly. They’ll call, mail notices, and sometimes message you on social media. Collectors can be persistent in their attempts to reach you.
When phone calls don’t work, collectors often file lawsuits. Taking you to court is completely legal. Court judgments give collectors powerful collection tools.
If a collector wins a lawsuit, they can:
- Garnish your wages (with limits on the amount)
- Levy your bank account to withdraw funds directly
- Place a lien on property you own
Wage garnishment is the most common result. It reduces your take-home pay but cannot drain your entire paycheck. Texas law protects a portion of your earnings.
Auto loan debt carries special risks. Lenders can repossess your vehicle without a court order. Texas repossession laws allow this aggressive collection tactic.
How To Deal With a Debt Lawsuit
Responding to the lawsuit is absolutely critical. You don’t need a lawyer to file a response. You can complete the necessary forms yourself with patience and basic knowledge.
Understanding the process and deadlines is essential. Read our article on responding to debt collection lawsuits in Texas for detailed guidance.
If you need help but can’t afford an attorney, our partner Solo has helped 280,000 people respond to debt lawsuits. They offer a 100% money-back guarantee and make the response process faster and less stressful.
Need Help With Debt Relief? Here Are Your Options
Financial emergencies can happen to anyone. One unexpected event can create serious debt problems. Don’t hesitate to seek help.
Many people overlook a valuable free resource: credit counseling. Nonprofit agencies employ professionals who can evaluate your situation. A credit counselor will review your debt, finances, and goals. They’ll recommend the best path forward, whether that’s a debt management plan, consolidation, or bankruptcy.
You deserve expert guidance to regain financial stability. Professional help can make all the difference in resolving your debt problems.