The Texas Debt Collection Act

August 2nd, 2011 | Author: | Law

If your Texas business is trying to collect debts, in addition to being aware of federal law, you must be aware of the Texas Debt Collection Act.  It includes legislation about what companies are and are not permitted to do when attempting to collect debts.  The following are a few of the regulations contained within this statute:

  • Companies are prohibited from collecting more money than was in the original debt — they cannot increase the principal debt.  However, they may add on additional fees and penalties for late payments if these were included in the original contract of the debt.
  • Companies have 30 days to respond to any written contesting of a charge.  If, due to the notice of the customer, the company realizes that there was an error in the charge, the company must contact anyone that they previously contacted about the debt and let them know of the change.
  • Those companies seeking to collect debts may not behave in a deceptive or abusive manner.

There are several other regulations included in the Texas Debt Collection Act.  While this law offers some protections to consumers, it also stipulates what their responsibilities are in dealing with unpaid debts.

No matter a customer’s reason for failing to repay a debt, it can be harmful and frustrating for businesses. The Austin debt collection lawyers of Slater, Kennon & Pugh LLP are experienced and knowledgeable about the Texas Debt Collection Act and all other legislation governing debt collection.  Call us at 512-472-2431 today for advice on collecting your debts or taking legal action.



Comments are closed.