The Texas Debt Collection Act
In addition to federal statutes which determine how businesses can attempt to collect debts, Texas has the Texas Debt Collection Act, a state law that sets guidelines on how businesses must act when trying to collect a debt, as well as what responsibilities the debtor has in these situations. The law sets forth the following standards:
- Companies attempting to collect consumer debts may not behave in any fraudulent or abusive ways
- Those collecting debts may not attempt to collect more money than the original debt was worth, though extra fees may be added if these were allowed in the contract concerning the debt
- If a debtor wishes to contest a charge, he or she must do so in writing, and then the creditor will have 30 days in which to respond
- If it is determined that a mistake was made, the creditor is responsible for contacting anyone who had been made aware of the incorrect debt
These are just a few of the stipulations of the Texas Debt Collection Act. If your business has an issue with consumers who have defaulted on loans or are unwilling or unable to repay debts, it is fair and just for you to pursue repayment. However, the process can be complicated, and at times it makes more sense for your business to sell the debts to a collection agency or otherwise give up on collecting the debt.
Contact Us
If your business is facing the onerous task of collecting debts, you may benefit from our advice and services. Contact the Austin debt collection lawyers of Slater, Kennon & Pugh, LLP, at 512-472-2431 to speak with a skilled and experienced attorney today.