Understanding Texas Debt Collection Laws: What You Need to Know
For over 25 years, I served as a debtor’s attorney, filing over 4,000 consumer bankruptcy cases under Chapters 7 and 13. Now, as an attorney representing creditors in Texas, I understand both sides of the equation. When it comes to Texas debt collection laws, it’s crucial to know your rights—whether you’re a creditor seeking payment or a debtor facing collection.
Debt collection is legal in Texas, but it comes with strict rules on how debt collectors can contact you. If your debt has been handed over to a collection agency, it’s essential to understand what the law allows them to do—and what they cannot. No two debt collection cases are the same, and having an experienced attorney can help you navigate the intricacies of Texas debt collection laws.
What Debt Collectors Can and Cannot Do in Texas
In Texas, debt collection agencies are permitted to contact you in various ways, including phone calls, letters, and even reaching out to family and friends. However, they are prohibited from engaging in harassment or making threats. For example, a debt collector cannot:
- Harass you with repeated calls or inappropriate language
- Threaten legal action like jail time, which they have no right to do
- Contact family or friends to pressure them into paying your debt
- Call your workplace if you’ve asked them not to
While debt collection agencies do have the right to pursue the payment of a debt, their actions are limited by law. If you feel a debt collector is overstepping their bounds, contacting an attorney can help protect your rights and ensure fair treatment.
How to Handle Debt Collectors in Texas
If you are being contacted by a debt collector and want them to stop calling, you have options. One of the most effective ways to stop the harassment is to send a written letter requesting that they cease communication. In addition, you can negotiate repayment terms directly with the collector.
It may be uncomfortable, but talking to the debt collector and coming up with a repayment plan can help resolve the situation. Debt collectors want to recover the money they’re owed, and many will work with you on smaller, more manageable payments if you explain your financial situation. Addressing the issue proactively can stop the calls and emails while you make progress on paying off your debt.
Texas Debt Collection Laws Protect Everyone
Texas debt collection laws exist to balance the interests of both creditors and debtors. As a former debtor’s attorney, I know how important it is for debtors to understand their rights and obligations. However, I now represent creditors who are looking to recover what they’re owed. Whether you’re a creditor or a debtor, understanding the law is crucial.
It’s important to remember that even if you stop the calls, the debt still remains. Paying off your debt or negotiating a payment plan is essential to avoid accumulating more debt and to prevent further collection efforts. Working out a solution with your creditor can provide relief from constant communication and help you regain financial stability.