Both Federal and Texas law prevent
harassment by debt collectors. Limitations have been set
to govern what actions a collector may take in attempting to
collect a debt. This page is a quick
overview of the debt collection laws.
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Texas Fair Debt Collection Practices Act
Texas law
prevents a debt collector from taking the following actions:
§ 392.301.
Threats or Coercion
(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 willfully 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
(8) threatening to take an action prohibited by law.
(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
(3) exercising or threatening to exercise a statutory or
contractual right of seizure, repossession, or sale that does not require court proceedings.
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§ 392.302.
Harassment; Abuse
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
(4) causing a telephone to ring repeatedly or continuously, or
making repeated or continuous telephone calls, with the intent to harass a person
at the called number.
§ 392.303. Unfair
or Unconscionable Means
(a) In debt
collection, a debt collector may not use unfair or unconscionable
means that employ the following practices:
(1) seeking or obtaining a written statement or acknowledgment
in any form that specifies that a consumer's obligation is one incurred for necessaries
of life if the obligation was not incurred for those necessaries; or
(2) collecting or attempting to collect interest or a charge,
fee, or expense incidental to the obligation unless the interest or incidental charge, fee, or
expense is expressly authorized by the agreement creating the obligation or legally chargeable
to the consumer.
(b) Notwithstanding Subsection (a)(2), a creditor may charge a
reasonable reinstatement fee as
consideration for renewal of a real property loan or contract of
sale, after default, if the
additional fee is included in a written contract executed at the
time of renewal.
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§ 392.304.
Fraudulent, Deceptive, or Misleading Representations
(a) Except as otherwise provided by this
section, in debt collection or obtaining information
concerning a consumer, a debt collector may not use a fraudulent,
deceptive, or misleading
representation that employs the following practices:
(1) using a name other than the:
(A) true business or professional name or the true
personal or legal name of the debt collector while engaged in debt collection; or
(B) name appearing on the face of the credit card
while engaged in the collection of a credit card debt;
(2) failing to maintain a list of all business or professional
names known to be used or formerly used by persons collecting consumer debts or
attempting to collect consumer debts for the debt collector;
(3) representing falsely that the debt collector has
information or something of value for the consumer in order to solicit or discover information about the
consumer;
(4) failing to disclose clearly in any communication with the
debtor the name of the person to whom the debt has been assigned or is owed when making a
demand for money;
(5) failing to disclose clearly in any communication with the
debtor that the debt collector is attempting to collect a consumer debt unless the communication
is for the purpose of discovering the location of 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; or
(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.
(b) Subsection (a)(4) does not apply to a person servicing or
collecting real property first lien
mortgage loans or credit card debts.
(c) Subsection (a)(6) does not require a debt collector to
disclose the names and addresses of
employees of the debt collector.
(d) Subsection (a)(7) does not require a response to the address
of an employee of a debt
collector.
(e) Subsection (a)(18) does not prohibit a creditor from owning or
operating a bona fide debt
collection agency.
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