Consumer Protection from Debt Collectors

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Even if you don’t file bankruptcy, the law protects you from harassing and illegal debt collection practices.  You do not need to be afraid to answer your phone.  We can teach you how to protect yourself and your home from the overwhelming attack of debt collectors and collection agencies.

 

Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act is a federal law that protects debtors from unfair and illegal collection activities.  This law is designed to specifically protect you against collection agencies, not original creditors.  It does, however, include attorneys who collect debts.  A short summary of the law is provided below.  For a detailed analysis of this law, please call us to schedule a FREE CONSULTATION.

 

• A collector may contact you in person, by mail, telephone, telegram, or fax.  A debt collector cannot, however, contact you at inconvenient times or places.  The collector is prohibited from contacting you before the hours of 8:00 a.m. or after 9:00 p.m., unless you agree to be contacted at such times.  The collector is also prohibited from contacting you at work if you have informed him that your employer disapproves of such contacts.
• You can stop a collector from contacting you by writing a letter to the debt collector telling them to stop.  Once the letter is received, the collector cannot contact you again except to say that there will be no further contact or to notify you that the collector intends to take some specific action, as filing a lawsuit.
• Debt collectors may not harass, oppress or abuse you or any third party they contact.  They cannot use threats of violence or harm.  They cannot use obscene or profane language.  They cannot use the telephone to annoy you.
• Debt collectors cannot make false or misleading statements when collecting the debt.  Debt collectors may not falsely imply that they are attorneys or government representatives.  They cannot falsely imply that you have committed a crime or can go to jail.  The are not allowed to misrepresent the amount of your debt.
• Debt collectors may not state that you will be arrested if you do not pay.  They cannot state that they will seize, garnish, attach or sell your property or wages unless the collection agency intends to do so and that it is legal to do so.
• Debt collectors may not give false information about you to anyone, including a credit bureau.

 

If a debt collector does any of these prohibited acts against you, you have the right to sue the collector in a state or federal court within one year from the date that the law was violated.  If you win, you may recover money for the damages you incurred in addition to $1,000.00, court costs and attorneys fees.

 

Texas Debt Collection Act

The Texas Debt Collection Act also protects you from harassing creditors.  This law is enforceable against the original creditor as well as collection agencies.  Some of the provisions of the Texas law include:

 

• Debt collectors are prohibited from using harassment or abusive collection tactics.
• Debt collectors cannot threaten violence or other criminal acts.
• They cannot use profane or obscene language.
• Debt collectors cannot threaten arrest of the consumer or repossession or other seizure or property without proper court proceedings.
• They cannot make repeated or continuous calls to harass.

 

If a creditor violates the Texas Debt Collection Act, they may be subject to criminal and civil penalties.  You have the right to sue these creditors and to recover monetary damages for their abuse.

 

Protection of your Home and Wages

Some collectors threaten to take away your homestead or to garnish your wages.  It is not lawful to do so in Texas unless the debt is somehow associated with your home (such as a mortgage or home equity loan).  Wages are typically garnished for child support, taxes and student loans, but not credit cards or medical bills.

 

 

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