Debt collection agencies have two ways to work with original creditors for collecting outstanding credit card and personal loan balances. A third party debt collector can work directly for an original creditor and receive a percentage of the money recovered from a consumer.
The second way involves an original creditor selling a delinquent consumer debt to a third party debt collector for a fraction of the original amount owed on the account. In both cases, bill collectors are highly motivated to score a huge windfall by getting consumers to settle delinquent debts.
Motivation often leads to the harassment of consumers by debt collection agencies. Fortunately, the Fair Debt Collection Practices Act (FDCPA) clearly defines illegal third party debt collection practices.
For example, a bill collector breaks the law by trying to recover a debt that a consumer has already paid off. The FDCPA also includes punitive provisions that require debt collection agencies to pay monetary damages for violating one or more provisions of the landmark r protection law.
Texas FDCPA Laws
Congress enacted the FDCPA to provide widespread protections for citizens living in every state of the union. In addition to following the federal consumer protection law closely, debt collection agencies must also adhere to the FDCPA laws passed at the state level.
States such as Texas have enacted FDCPA laws that clarifies federal consumer protection statutes and/or adds more teeth to the FDCPA by outlawing additional third party debt collector practices.
Texas FDCPA laws are considered consumer friendly, and most of the statutes reaffirm the prohibited practices established by the federal FDCPA. In Texas, FDCPA laws include provisions that regulate the fees and rates charged by credit card companies.
Bill Collector Harassment Protection under the FDCPA and Texas Collection Laws
The FDCPA requires debt collection agencies to honor the requests of consumers that want to end all forms of communication. Third party debt collectors are also barred from threatening to seize private property and impersonating law enforcement agencies in attempts to collect delinquent consumer debts.
You should contact a Texas licensed consumer protection lawyer immediately if a bill collector calls a third party to request the payment of an outstanding credit card or personal loan balance.
Texas FDCPA laws apply to original creditors, consumer debt collection agencies, and private child support collection agencies. State law closely follows the provisions written into the federal FDCPA.
Texas FDCPA laws make it illegal for bill collectors to harass and threaten consumers, as well as implement deceptive debt collection tactics. Moreover, the Lone Star State has established specific requirements for the written communications sent by debt collection agencies to consumers.
One of the unique components of Texas FDCPA laws is the prohibition of original creditors hiring bill collectors that have frequently violated the federal FDCPA. Debt collection agencies have four year under Texas FDCPA laws to file a lawsuit in an attempt to collect an outstanding consumer debt.
Take advantage of the rights granted by Texas and federal FDCPA laws by speaking with a Texas licensed consumer protection attorney.
If you believe that a debt collector is violating Texas’ FDCPA laws, you should seek the help of an FDCPA attorney. You may be able to seek up to $1,000 in damages for each violation of the FDCPA. An attorney will be able to help navigate you through the entire process.