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What limitations are set on debt collections?

| Jun 7, 2019 | Creditors' Rights |

It is not uncommon for a small business in Texas to have customers owe it money. Depending on the type of business you run, you may often sell items to customers on credit. Doing so means that you should also have a collections process in place to go after customers who do not pay their debt. When you do any type of collections, you should understand debt collection laws in the state to ensure you are not breaking any.

According to the Texas Office of Consumer Credit Commissioner, there are various things the Texas debt collection law says you cannot do. This law picks up where the federal law drops off, meaning that it covers you when collecting your own debts.

When you contact a debtor, you have to provide written proof of the debt within five days if the debtor objects to owing you money. You also must stop contacting the person if they request in writing that you do so. If you are able to contact a debtor, you can only do so between the hours of 8:00 a.m. and 9:00 p.m. Do note that you cannot contact anyone else other than an attorney representing the debtor.

You never should make false statements or threats when collecting a debt. You should only collect the money rightfully owed to you.

These laws help to keep things fair. They allow you to collect on the debt without using underhanded tactics to do so. It enables debtors to ensure they only pay valid debts and to avoid scams. This information is for education only. It is not legal advice.