Under the Fair Debt Collection Practices Act (FDCPA), third party debt collectors are not allowed to use abusive language or make threatening phone calls to collect outstanding debts. The FDCPA forbids debt collectors from tricking consumers into paying off debt owed to original creditors.
Debt collectors such as Paramount Recovery Systems must also follow every provision of the Texas Debt Collection Act (TDCA), which defines the statute of limitations for collecting consumer debts, as well as places restrictions on the fees and interest charged by third party debt collectors.
If a representative from Paramount Recovery Systems has violated one or more of the legal standards set by the FDCPA or TDCA, a licensed consumer protection law attorney can help you file a claim against the agency.
What is the Statute of Limitations for Collection a Consumer Debt in Texas?
As with criminal law, the TDCA sets a statute of limitations for the collection of consumer debt. The TDCA grants third party debt collectors four years to collect consumer debts, which represents one of the shortest statute of limitation for collecting consumer debts in the United States.
The clock starts ticking on third party debt collectors on the day of the original past due date. Debts covered under the statute of limitations in Texas include student loans, credit card debt, and personal bank loans.
The TDCA and Debt Collector Fees
When consumers stop sending in payments to settle delinquent debts, original creditors have the legal right to add fees and interest in accordance to the language of a written contract.
For third party debt collectors, the TDCA requires third party debt collectors to clearly describe every fee and interest charge added to outstanding consumer debts. Section 393.303 of the Texas Finance Code states third party debt collectors must provide written evidence of the legal authorization to charge debt collection fees.
Can a Debt Collector Garnish My Wages?
Like virtually every other state, Texas law permits the garnishment of wages to settle consumer debt. Wage garnishment in Texas applies only to taxes, alimony, child support, and student loans.
Consumer debt such as bank installment loans and credit card accounts do not qualify for wage garnishment. If Paramount Recovery Systems attempts to garnish your wages for a consumer debt, you have the right to contact an attorney to file a claim against the debt collection agency.
How an Attorney Can Help You
Debt collectors that violate many of the provisions written into the TDCA also violate the Texas Deceptive Trade Practices/Consumer Act. The Texas Attorney General can take legal action for the crossover violations.
For violations of the FDCPA and TDCA, consumers should contact an experienced consumer protection law attorney. Your attorney understands how to draft a cease and desist letter, and seek monetary awards for the actual damages caused by an unethical third party debt collector.
*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 Paramount Recovery Systems or any other third-party collection agency, you may not be entitled to any compensation.