What Counts as Unlawful Collection?

Any tactic that harasses, deceives, or unfairly pressures a consumer to pay a personal or household debt breaches state or federal rules. Harsh language, false threats, hidden fees, or calls placed at forbidden hours all fall under the umbrella of “prohibited practices.”

Why This Matters

• Consumers avoid needless stress, credit damage, and illegal charges when they know their rights.
• Collectors and original creditors protect their licenses and bottom line by complying with statutory standards instead of inviting costly lawsuits and agency penalties.

Governing Law at a Glance

Federal Law

• Fair Debt Collection Practices Act (FDCPA)
  • Prohibits abusive, deceptive, or unfair conduct by third-party collectors and debt buyers.
  • Requires a 30-day validation notice to consumers.
  • Caps statutory damages at $1,000 plus attorney’s fees.
• Telephone Consumer Protection Act (TCPA)
  • Restricts autodialed and prerecorded calls, text messages, and unsolicited faxes.
  • Provides for statutory damages of $500–$1,500 per unlawful call or text.

Texas Law

• Texas Debt Collection Act (TDCA), Fin. Code ch. 392
  • Extends FDCPA-style prohibitions to original creditors as well as third-party collectors.
  • Allows recovery of $100 per violation, plus injunctive relief and attorney’s fees.
• Deceptive Trade Practices–Consumer Protection Act (DTPA)
  • Borrowers may “tie in” TDCA violations.
  • Authorizes up to treble damages when violations are committed knowingly or intentionally.

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Conduct Most Often Out of Bounds

1. Harassment – repeated calls, profanity, threats of violence.
2. False threats – pretending legal papers have been filed, or claiming imminent arrest or wage garnishment when none is scheduled.
3. Fee padding – tacking on interest, charges, or attorney’s fees not authorized by contract or law.
4. Impersonation – posing as a lawyer, government official, or credit bureau.
5. Third-party disclosure – discussing the debt with a family member, neighbour, or employer without consent.
6. Inconvenient contact – calls before 8 a.m., after 9 p.m., or at a known workplace that bars personal calls.

Enforcement Tools

• Regulators – The CFPB, FTC, and Texas Attorney General investigate complaints, negotiate consent orders, and levy civil penalties.
• Private lawsuits – Consumers may sue within one year of the violation (two years under the TDCA). Relief can include actual damages, statutory damages, treble damages under the DTPA, and attorney’s fees.
• Cease-communication letter – Once the collector receives a written “stop” notice, further contact must cease except for narrow purposes (e.g., confirming that collection will stop or notifying of a specific legal action).
• Debt validation request – Within 30 days of the first collection letter, a consumer may demand proof of the debt; collection pauses until verification arrives.

Compliance Checklist for Collectors

1. Provide the FDCPA “mini-Miranda” disclosure at the outset of every debt contact.
2. Issue the written validation notice within five days.
3. Call only between 8 a.m. and 9 p.m. consumer local time.
4. Avoid any false representation of amount owed, legal status, or collector identity.
5. Record and retain all communications; adopt policies for handling cease-and-desist and validation requests.
6. Train staff annually on FDCPA, TDCA, and TCPA requirements; update scripts and dialer settings to reflect regulatory changes.

Practical Steps for Consumers

• Document everything – keep letters, voicemail recordings, and a call log noting dates, times, and names.
• Request validation – send a dated letter within 30 days asking for the amount, the original creditor, and supporting documents. Mail certified, return-receipt.
• Set boundaries – if calls are disruptive, send a cease-communication letter or specify acceptable hours in writing.
• Review your credit report – confirm the collector is reporting accurately; dispute errors with the credit bureaus.
• Act promptly – consult a consumer-rights attorney if harassment continues or you are sued; defenses and counterclaims often depend on quick action.

Connect With Us

Fair debt collection rules balance two imperatives: giving creditors a lawful path to recover what they are owed and shielding Texans from intimidation or deceit. Collectors who follow the statutes enjoy predictable recoveries and fewer lawsuits; consumers who know the rules can insist on respectful treatment and seek redress when boundaries are crossed. For tailored guidance—whether you’re refining in-house collection protocols or defending against harassment—our law firm stands ready to help you navigate the regulatory landscape with confidence.

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