The State of Texas provides consumer protections in the event that a business, whether based in Texas or outside of Texas, violates consumer statutes such as the Texas Finance Code, or Debt Collection Law. If a debt collector violates the Debt Collection laws of the State of Texas, a consumer has the right to file a civil action under the Deceptive Trade Practices statute.

How does Texas Deceptive Trade Practices law provide protection?

A debt collector or debt collection company that violates any statutes in the Texas Finance Code can be sued for deceptive trade practices.

  • A consumer may maintain an action against a debt collector if the debt collector has engaged in false, misleading or deceptive acts in debt collection or credit reporting that is detrimental to the consumer.
  • A debt collector can be sued if they have commited unconsionable action to a consumer’s detriment that takes advantage of the consumer’s lack of knowledge, ability, experience, or capacity of the consumer to a grossly unfair degree.
  • If the court finds that the debt collector knowingly committed these acts by violating Texas Finance Code, the consumer may recover damages for mental anguish in the amount of up to three times (trebling) the economic damages suffered.
  • The Deceptive Trade Practices statutes provide specific guidelines for filing civil action against a debt collector.

Where can I read the Deceptive Trade Practices law?

Deceptive Trade Practices laws pertaining to Texas Finance Code violations are outlined in Texas Business & Commerce Code, Chapter 17, Section 46 – 63.