Debt collection is a serious matter and can often disrupt your financial and personal life. With the current economic climate, almost everyone owes debt. Whether the debt is owed to another private party or to a commercial creditor, you have rights as a consumer with regard to that debt. Both federal and state laws apply to keep creditors from unlawfully attempting to collect a debt. This post will address some of those protections based in the federal law and in Texas law. If you are having trouble with a particularly frustrating debt collector, give us a call so that we can discuss your options. Even if the collector is doing everything correctly under the law, we might be able to help you understand how to proceed with your debt and finances to put you in a better position in the future.
The federal government regulates the collection of debt under the Fair Debt Collection Practices Act (FDCPA). The FDCPA protects consumers, which is defined as any person obligated or allegedly obligated to pay a debt. Particularly, the type of debt regulated by the FDCPA is consumer debt. Consumer debt arises when a person incurs an obligation to repay money that is undertaken for primarily personal, family, or household purposes. If you incurred a debt obligation when you purchased a television for your family, that debt is subject to the regulations of the FDCPA. The scope of debt collector liability is restricted. We can help you determine if your particular debt collector falls within the FDCPA’s reach.
Under the FDCPA, debt collectors are prohibited from communicating with the consumer during an unusual time or place, or at a place known to be inconvenient, absent your prior consent. For example, a debt’s collectors attempt to communicate with you at 3:30 a.m. is unusual, unless you previously consented to this behavior. A debt collector also cannot attempt to communicate with you at your job, if the debt collector knows that your employer prohibits such communication. Last, if you retain us to represent your interests in the matter, your debt collector will be prohibited from contacting you directly and must contact your legal representation. Debt collectors are allowed to contact third parties under limited circumstances. One such inquiry is in regards to your location. The debt collector cannot exceed the scope of its inquiry, however, and cannot disclose information to a third party that would cause embarrassment or indicate that you are in debt.
Additionally, the FDCPA prohibits debt collectors from harassing or abusing any person in connection with the collection of the debt. Debt collectors may not make false, misleading, or deceptive representations in connection with collecting the debt. And, the debt collector may not engage in unfair practices when engaging in debt collection. If a debt collector violates the FDCPA, an individual may seek an award of damages in court if the action is brought within 1 year of the violation.
Texas regulates debt collection under the Texas Debt Collection Act (TDCA). The TDCA defines “consumer” and “debt” similarly to the FDCPA, with minor modifications. A debt collector, however, is broadly defined and includes both third-party debt collectors and entities that attempt to collect their own debts.
The TDCA prohibits debt collectors from using threats or coercion to attempt to collect a debt. A debt collector may, however, threaten appropriate legal proceedings if they are available. A debt collector may not harass or abuse a consumer in an attempt to collect a debt. This includes repeatedly making phone calls to annoy or harass the consumer. The debt collector may not act unfairly in its attempt to collect the debt, which includes attempting to collect an unauthorized charge or expense. A debt collector also may not make fraudulent, deceptive, or misleading representations during its attempt to collect a debt. This includes communications received by the consumer that do not clearly indicate that they are from a debt collector.
Violation of the TDCA could incur criminal and civil penalties. A TDCA violation is punishable as a misdemeanor and subject to the imposition of a fine. A person may also bring an action in court for damages suffered by the violation. If successful in bringing this action, the court will also award attorney’s fees. To enforce the criminal penalty, the violation must be adjudicated within 1 year of its occurrence. Additionally, a violation of the TDCA is actionable as a violation of the Texas Deceptive Trade Practices and Consumer Protection Act (DTPA) as well.
If you feel that a debt collector has violated your consumer rights, please give us a call. We will review the facts of your case to determine what remedy, if any, you are entitled to, based on the possible violation.
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