A Quick Look At Texas Credit Card Laws

A person who suddenly begins getting calls from companies or collection agencies about credit card bills is very fortunate if they live in Texas. Texas credit card laws protect consumers more than many other states and even though failing companies find extra money selling old debts to 3rd party collectors, there are specific regulations that the collection companies must follow when they want to collect money on a debt.

The volatile economy has affected many companies negatively, however it has also affected most people negatively also. Many people find it difficult to make timely payments on their current debt without having a collection agency begin harassing you about an old credit card debts. When this occurs in Texas, you have some protections that are not afforded in other states.

An important fact to be aware of when you are called about an old credit card bill, is that there is a statute of limitations on the time a credit card company or collection agency can sue you. This is called “Time barred debt” and, although a collection agency may threaten to sue you, knowing that if the debt they are talking about is well over 4 years old will place you in an excellent position.

Besides federal law, Texas has more restrictions to protect people from harassment from collection agencies. If you are being threatened on a “Time Barred Debt”, the agency is breaking the law and can be fined from $100 to $500 for each violation if you turn them into the State Attorney General. When you talk to the agency, get their name, address and phone number, as well as the name of the person you are talking to. Immediately contact the Attorney General’s office and file a complaint. It is important to remember that if you make a payment on a “time barred debt” the statute of limitation clock starts ticking again and you can be sued.

Harassment is also included in the consumer protection laws. If you are called repeatedly by a collection agency, you can send a certified letter telling them that you want proof of the debt and to stop calling you and they must stop. If you are contacted by phone again after receiving the certified receipt, make a copy and file a complaint with the Attorney General. This is illegal and the collection agency cannot harass you.

When you receive a summons for court, do not ignore it. Call an attorney that is experienced and knowledgeable in credit card debts and find out what steps you should take to resolve the issue. The attorney will discuss the court process with your and explain about the type of evidence that the creditor will have to present to prove that you owe the debt. When you have retained a reputable attorney, they will represent you with the creditors and when you go to court.

Scam collection companies are growing in number and it will be important that you get a lawyer who is experienced in Texas credit card laws if you have been contacted by a company or agency regarding a bill that you have paid or do not remember. Do not give personal information to a collection agency, since they should have all the information needed on hand when they contact you. In addition, do not make payments to the company for an old debt until you have gotten advice from an attorney.

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