Collection of Credit Card Debt in Texas

If you are a debtor who has fallen behind your payments in Texas, you face an array of potential debt collection actions from your creditors. From simple phone calls to more complicated processes that involve lawsuits, debt collectors have different ways to collect the debt from you. Talk to a lawyer if you need legal advice about debt collections.

FDCPA

The simplest way a debt collector tries to collect an unpaid debt is by convincing the debtor to pay. They do this in a number of ways, but most often through phone calls and letters. Whenever a debt collector tries to collect a debt, it must comply with the Fair Debt Collections Practices Act, or FDCPA, a federal law that applies in all states. This law includes limits on collector actions, such as limiting their calls between the hours of 8:00 in the morning and 9:00 at night, according to the Federal Trade Commission.

Texas Protections

Texas also has a state law that protects debtors from debt collectors. Whenever a credit card debt collector contacts you in Texas, the Texas Debt Collection Act prohibits the collector from trying to collect more than the actual amount of money you owe. You can also notify the debtor in writing that you dispute the debt. After receiving the dispute, the collector has to stop contacting you and has 30 days to investigate your claim to determine if it is true.

Lawsuits

A creditor who is unable to collect on a credit card debt in Texas through persuasive efforts can file a lawsuit against the debtor. Like any lawsuit, the creditor has to notify you when he files the lawsuit. You then have a chance to defend yourself against the claim by taking such actions as filing a written response to the credit card company's claims or presenting your case before the court in a hearing.

Judgments

The reason a credit card company sues you to collect on the debt is because it has no other way to get its money back. Credit cards are usually a form of unsecured debt and the creditor does not have the right to collect collateral. However, if the card company sues you and wins, it becomes a judgment creditor and is now a secured creditor. It can then use the judgment to collect the money through garnishments, bank levies or other methods.