Texas Debt Collection Laws That Protect Your Rights

Texas debt collection laws control how creditors can contact you. When consumers fall behind on payments, some collectors turn to illegal tactics. You have powerful protections under state and federal law.

Texans can fight back against abusive debt collectors. These laws explain how collectors must communicate with you. They also outline what happens when collectors break these rules.

You deserve to know your rights. Understanding these protections helps you stop illegal collection attempts.

Texas Debt Collection Practices Act Protects Consumers

The Texas Debt Collection Practices Act stops collectors from using bad business practices. Title 5 Chapter 392 Subchapter D contains the most important consumer protections. Below are the specific laws that shield you from abuse.

Threats and Coercion Are Illegal

TX Fin Code § 392.301 prohibits debt collectors from using threats and coercion. Collectors cannot engage in these tactics:

• Falsely accusing you of fraud or other crimes
• Threatening arrest for non-payment without a court order
• Filing charges or complaints without valid legal grounds
• Threatening violence or harm to you or your property
• Threatening to seize property without proper court proceedings
• Accusing you of willful non-payment when the debt is disputed

Abuse and Harassment Violate Your Rights

TX Fin Code § 392.302 bans harassment and abusive behavior. Collectors cannot do the following:

• Call you repeatedly without identifying themselves or their purpose
• Use obscene, profane, or abusive language
• Make you pay telegram fees or long-distance charges
• Let your phone ring endlessly to harass you

Unfair and Unethical Collection Methods

TX Fin Code § 392.303 protects you from questionable collection tactics. Collectors cannot use these unethical practices:

• Collect on dishonored checks without meeting specific legal conditions
• Add unauthorized charges, interest, or fees to your debt
• Claim the debt is for necessities when it is not

Example: Stacy owed $700 to Gradit Credits. She wrote a check that bounced. Gradit sold the debt to Discovery Collections. DC demanded the $700 plus $50 for dishonored check charges. Stacy sued DC for using unfair collection methods. She won because they violated Texas law.

Misleading and Deceptive Practices Are Banned

TX Fin Code § 392.304 stops collectors from lying to you. They cannot engage in these deceptive actions:

• Fail to identify the original creditor or the reason for contact
• Omit the collector’s name, address, or phone number from written demands
• Misrepresent your debt amount in legal proceedings
• Falsely claim government affiliation or support
• Add fees not included in your contract or allowed by law

Federal Law Adds Extra Protection

The Fair Debt Collection Practices Act provides additional federal protections. Texas law borrows heavily from the FDCPA. You can use both state and federal laws to fight abusive collectors.

Federal protections work alongside Texas laws. Together, they create strong defenses against illegal collection practices.

How to Fight Back Against Illegal Collection Tactics

You have options when collectors violate your rights. Follow these steps to protect yourself and take action:

Document Everything

Keep records of every collector interaction. Save emails, letters, voicemails, and text messages. Write down what was said during phone calls. Note dates, times, and specific violations. Strong documentation strengthens your case.

Send a Written Warning

Inform the collector in writing about their violation. Demand they stop the illegal behavior immediately. State that you will take further legal action if they continue. Some collectors will stop after receiving your letter.

File Official Complaints

Report violations to multiple agencies. File complaints with the Texas Attorney General’s office. Submit reports to the Consumer Financial Protection Bureau. Contact the Better Business Bureau and the Federal Trade Commission. These agencies often force collectors to respond or correct their mistakes.

Dispute Credit Report Errors

Collectors sometimes report incorrect debt amounts to credit bureaus. Dispute these errors with Equifax, Experian, and TransUnion. The bureaus must investigate within 30 days. Proven errors get removed from your credit report.

Consider Legal Action

You can sue collectors who violate Texas law. Consult with our partner Solo to evaluate your case. Successful lawsuits can result in damages awards. Collectors may also pay your attorney fees.

Respond to Debt Collection Lawsuits

Collectors sometimes file lawsuits to force payment. You must respond within the deadline on your court summons. Failing to answer results in automatic judgment against you.

Your written Answer challenges the lawsuit’s claims. You can dispute the debt amount or raise legal defenses. Many consumers win or settle favorably when they respond properly.

Our partner Solo helps you draft a strong Answer to debt lawsuits. You can also negotiate settlements before your court date.

Validate Your Debt Before Paying

Collectors must prove you owe the debt. Request debt validation in writing within 30 days of first contact. Collectors must stop collection efforts until they provide proof.

Validation letters force collectors to verify the debt’s accuracy. They must show the original creditor’s name and the exact amount owed. Many collection attempts stop after validation requests.

Settlement Options for Texas Consumers

You can negotiate to pay less than the full amount owed. Collectors often accept settlement offers between 30-50% of the balance. Settlement helps you resolve debt without going to court.

Get settlement agreements in writing before making payments. Confirm the collector will report the debt as satisfied. Never give collectors direct access to your bank account.