The Office of the Consumer Credit Consumer oversees laws for unpaid credit debt in Texas. These regulations pertain to the pursuit of credit debts owed and the statute of limitations involving these credit debts. Creditors and collection agencies not in compliance with these regulations risk fines and the loss of licenses to operate in Texas.
Debt Statute of Limitations
The statute of limitations for debt collection involving credit accounts in Texas is four years. A creditor or debt collection company has this amount of time to compel a debtor repay a credit debt before the creditor loses the right to pursue the debtor in court. If a creditor or debt collection company attempts to sue a debtor after this statute expires, the court may dismiss the lawsuit sighting the time-barred status of the debt. The court may also bar the creditor or debt collection agency from suing the debtor for this particular credit debt ever again.
Fair Debt Collection
Texas law follows federal guidelines established by the Fair Debt Collection Practices Act regarding the proper treatment of consumers by creditors and debt collection agencies. Under these regulations it is illegal for creditors and debt collection companies to harass debtors, threaten debtors with legal action when such action is not possible, impersonate law enforcement or publish a list of debtors who refuse to pay on credit accounts or other consumer debts.
Wage Garnishments/Property Lien
Wage garnishment is illegal for most credit account debts in Texas. Wage garnishment is only legal for tax debts, alimony payments, back child support and federally secured student loan debt. In these cases, wage garnishment is limited to either 25 percent of the debtor's disposable weekly income or up to 30 times the minimum wage in weekly earnings -- whichever is lower. A creditor of collection agency may attempt to win a judgment to place a lien on property a debtor owns. A property lien entitles a creditor to a share of the profits from the sale of the attached property.
Truth in Debt Reporting
It is illegal in Texas and other states across the country for a creditor or debt collection agency to report false information to a credit reporting bureau. It is also illegal for a creditor or debt collection agency to misrepresent the total amount a debtor owes or to pursue a debtor for more than the original amount of the delinquent credit account in question. If a debtor makes payment to a creditor in the form of a post-dated check, a creditor or collection agency may not deposit that payment before the date on the check.
0 comments:
Post a Comment