A Look At Texas Credit Card Laws
January 27th, 2012 by audreyIf you live in Texas, you are very fortunate to be living in one of the states that offers the greatest protection to consumers regarding credit card bill in the United States. One of the ways that some failing companies have tried to increase their income is to sell debts to a 3rd source, or collection agency, for pennies on the dollar.
In the current economy most people find it difficult to pay their current debts without a collection agency calling about a bill that they don’t even remember. However, companies sell their old accounts receivables for pennies on the dollar and if a collection agency can collect even a fraction of the debt they have bought, they make a significant amount of money. Therefore, they will often use unscrupulous methods to try and get money out of people. Having some information about the laws in place that are designed to protect consumers will help you to deal with these calls more effectively.
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 laws protect people from being illegally harassed by creditors. When a collection agency threatens to sue you for a debt that has passed the statute of limitations, they are breaking the law and can be fined from $100 to $500 for each violation. It will be important that you contact the State Attorney General and report the agency immediately when they have broken the law. By getting the name of the agency, their address and phone number, and the name of the person you are talking to, you will have the information that the Attorney General will need to take action. It is also important to remember that if you make a payment on an old debt, the statute of limitations clock starts running again and you can be sued for the amount due, plus fees.
Another part of the consumer protection law is about harassment. If you write a certified letter to a collection agency, telling them not to call you, they have to stop calling. If you get a call from the agency after you have received the certified receipt back from the post office, make a copy of the receipt that you received, and report them to the Attorney General. Again, the agency will be fined from $100 to $500 for breaking the law.
If you receive a summons to appear in court regarding a debt, do not ignore it. Find an attorney that specializes in credit card bill and learn what steps you need to take. When a creditor takes you to court, they have to prove that you owe the debt by following Texas Evidentiary Rules. Your attorney will begin representing you as soon as you hire them. They will make contact with the collection or credit card company and represent you when you go to court.
There are many scam collection companies contacting people regarding debts that are over 10-20 years old. These companies use any unscrupulous means they can think of to scare a person, take advantage of them, and take their money. Never give personal information to a collection agency. If they are legitimate, they will have all the information they need on hand. If you are harassed or sued, a lawyer that knows about Texas credit card laws and refer any callers to your lawyer and they will take the worry off your shoulders.
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