Texas Debt Collection Statute

[RobertEG]

I have some questions regarding theTexas state debt collection practices statute that perhaps some who have used it can answer.

It is touted over and over on the site that a debt collector is required to respond to a DV within 30-days if the consumer is a resident ofTexas.  Without going into all the statutory details, I don’t see any such  requirement in theTexas debt collection statute, even by implication.  So where does that assumption come from?

What I see is the provision for residents ofTexas to send a separate letter to a debt collector, called a “Notice of Inaccuracy,” invoking its own requirements and time periods.  It imposes no cease collection bar upon receipt, and in fact, while setting a period for response, permits the debt collector to respond within the 30-day period by simply stating they have not completed their investigation, and thus present no determination.  Then the issue of a cease collection bar kicks in.  Totally different and apart from the federal DV process, with no statement of settng a 30-day period for response to FDCPA DV requests. 

 I see absolutely no mention of requring response to a DV request under FDCPA 809(b) within any time period. 

 Am I missing something?

[llecs]

http://www.statutes.legis.state.tx.us/Docs/FI/htm/FI.392.htm

I think it's under 392.202(b). I'm not a Texas, but if being born there would apply under the statute, then hooray, but it's not to be. I'm not certain that everyone associates the requirements under this statute on par or equal to Sect. 809 of the FDCPA. It's two different laws under two different sets of requirements. I think some are calling it a DV because you are asking the CA to prove what you feel to be an inaccuracy, much like asking a CA to do the same under the FDCPA. IMO, if you see a CA, send a simple DV (e.g. under the FDCPA Sect. 809 please validate this...or something like that) -AND- include a reference of 392.202(b) asking for the same. A Texas resident shouldn't send a DV mentioning the FDCPA only and expect Texas law to be invoked.

[MarineVietVet]

I agree that it's all in Sec. 392.202

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CORRECTION OF THIRD-PARTY DEBT COLLECTOR'S OR CREDIT BUREAU'S FILES. 

(a)  An individual who disputes the accuracy of an item that is in a third-party debt collector's or credit bureau's file on the individual and that relates to a debt being collected by the third-party debt collector may notify in writing the third-party debt collector of the inaccuracy.  The third-party debt collector shall make a written record of the dispute.  If the third-party debt collector does not report information related to the dispute to a credit bureau, the third-party debt collector shall cease collection efforts until an investigation of the dispute described by Subsections (b)-(e) determines the accurate amount of the debt, if any.  If the third-party debt collector reports information related to the dispute to a credit bureau, the reporting third-party debt collector shall initiate an investigation of the dispute described by Subsections (b)-(e) and shall cease collection efforts until the investigation determines the accurate amount of the debt, if any.  This section does not affect the application of Chapter 20, Business & Commerce Code, to a third-party debt collector subject to that chapter.

(b)  Not later than the 30th day after the date a notice of inaccuracy is received, a third-party debt collector who initiates an investigation shall send a written statement to the individual:

(1)  denying the inaccuracy;

(2)  admitting the inaccuracy;  or

(3)  stating that the third-party debt collector has not had sufficient time to complete an investigation of the inaccuracy.

(c)  If the third-party debt collector admits that the item is inaccurate under Subsection (b), the third-party debt collector shall:

(1)  not later than the fifth business day after the date of the admission, correct the item in the relevant file;  and

(2)  immediately cease collection efforts related to the portion of the debt that was found to be inaccurate and on correction of the item send, to each person who has previously received a report from the third-party debt collector containing the inaccurate information, notice of the inaccuracy and a copy of an accurate report.

(d)  If the third-party debt collector states that there has not been sufficient time to complete an investigation, the third-party debt collector shall immediately:

(1)  change the item in the relevant file as requested by the individual;

(2)  send to each person who previously received the report containing the information a notice that is equivalent to a notice under Subsection (c) and a copy of the changed report;  and

(3)  cease collection efforts.

(e)  On completion by the third-party debt collector of the investigation, the third-party debt collector shall inform the individual of the determination of whether the item is accurate or inaccurate.  If the third-party debt collector determines that the information was accurate, the third-party debt collector may again report that information and resume collection efforts.

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IMO it can't be more clear about the 30 day time limit to respond and the admonition the the CA's to cease collection during the investigation. Whether you call it a DV or a “Notice of Inaccuracy" it's the same process.

[RobertEG]

Thanks for the clarifications!

So, invoking the Texas provisions requires a separate Notice of Inaccuracy from the consumer, and also imposes its own cease collection bar upon its receipt.....

It thus appears to be inaccurate to state that the Texas statute requires response to a DV under the FDCPA within 30 days, which was the crux of my question.

So, if the debt collector provides notice within the 30-day response period that they have not completed their investigation, they apparently must  "change the item in the relevant file as requested by the individual" until such time as they provide their determination.

Thus, it appears that a Texan, when sending such a request, can simply state that they request deletion of the reported collection from their credit file?  And the requirement to change per this request by the consumer would then take effect upon day 30 if the debt collector does not provide a determination in their response?

Looks like a neat way to get a temporary CR deletion.

It appears as if a response from the debt collector that they have not made a determination would be a very favorable outcome for the consumer....