Consumer Law: Texas Debt Collection Act

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TX Debt Collection Act (TDCA) is basic state mechanism for governing wrongful debt collection

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Common law and statute. Tort of "wrongful debt collection" is recognized and allows tort damages, but largely replaced by TDCA enactment

TDCA is a tie-in statute that covers consumers [specifically debt for personal/family/household purposes] --> actionable under DTPA

Anyone (including attorneys) collecting consumer debt qualifies as debt collecter under state law

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Conduct prohibited under TDCA.

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1) Exclusive list of practices
2) Threats or coercion: threat of arrest; threat to take action prohibited by law; threat wage garnishment; threat to take exempt property
3) Harassment and abuse: profanity, annoying calls
4) Unfair or unconscionable conduct: broadest under federal; limited under state
5) Fraudulent, Deceptive or Misleading Representations:

[Misleading or deceptive names; Deceiving consumer to get information; Misrepresentation what can happen to consumer; Misrepresenting that you are an attorney; Creditor has no liability unless it had knowledge of collector’s activities]

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Penalties and remedies under TDCA

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Criminal penalty: misdemeanor, fined

Civil remedies:
1) Actual damages
2) Injunctive relief (equitable) or actual damages
3) Winning P entitled to reasonable attorneys’ fees; if bad faith or harassment, award D
4) Minimum recovery $100 for each violation: successful action for failure to maintain a bond, or failure to properly review accuracy of information in a file or use of threats or coercion