Congress passed the Fair Debt Collection Practices Act (FDCPA) to protect consumers against the unscrupulous behavior of third party debt collectors. The FDCPA prohibits debt collectors such as Direct Recovery Associates from using deception to collect delinquent debts.
Third party debt collectors are also prohibited from using abusive language or making threats. After passage of the FDCPA, most states enacted consumer protection laws to fill in the legal blanks left by the FDCPA.
The Texas Debt Collection Act (TDCA) sets the statute of limitations for debt collection, as well as the number of extra fees and interest third party debt collectors can charge consumers. By speaking with a licensed consume protection lawyer, you ensure Direct Recovery Associates follows federal and state debt collection laws.
How Much Time Does a Debt Collector Have to Pursue a Debt?
As with criminal law, civil law mandates a well-defined statute of limitations for collecting consumer debts. In Texas, debt collectors have four years to collect outstanding consumer debts.
The four-year statute of limitations is one of the shortest of its kind in the United States. Consumer debts covered by the TDCA statute of limitations include student loans, personal loans, and credit card debt. The statute of limitations begins on the day of the original past due date on a credit account.
The Legality of Charging Fees and Interest
Third party debt collectors earn a huge profit by purchasing consumer debts from original creditors. The profit margin grows when debt collectors tack on more fees and interest charges.
By speaking with a Texas licensed lawyer, you can determine whether Direct Recovery Associates followed the TDCA by clearly explaining every fee added to an outstanding debt. The TDCA requires third party debt collectors to present written evidence of the legal authority to charge fees and interest.
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How Does Texas Address Wage Garnishment?
Texas law permits wage garnishments for a limited number of reasons, including alimony, back taxes, child support, and student loans. The Lone Star State does not allow debt collectors to garnish wages to settle delinquent consumer debts.
If Direct Recovery Associates attempts to garnish your wages, you should speak with an experienced consumer law lawyer to file a claim against the third party debt collector.
You Have the Right to Seek Damages
By working with a lawyer to file a claim, you exercise your legal right to take action against Direct Recovery Associates for violating the FDCPA and/or TDCA. A licensed consumer protection lawyer knows how to draft a cease and desist letter, as well as help you win actual damages caused by a debt collector like Direct Recovery Associates.
Actual damages can include a physical ailment caused by stress or emotional suffering derived from constant debt collector harassment.
Additional Resources
*Disclaimer: The content of this article serves only to provide information and should not be constructed as legal advice. If you file a claim against Direct Recovery Associates or any other third-party collection agency, you may not be entitled to any compensation.