# Texas Debt Law Research Summary (Jul 7, 2026)

Prepared for Debt Recovery Experts (DRE) internal policy manual. This is a research summary — NOT legal advice. Requires Texas attorney review.

## Texas Debt Collection Act (TDCA) — Finance Code Ch. 392

- DRE must register as a debt collector in Texas (bond/registration likely required)
- Prohibited practices: threats, harassment, false representations, unfair/unconscionable means
- Penalties up to $4,000 per violation
- Must provide written notice within 5 days of first communication (validation notice)

## Limited Power of Attorney

- Must be in writing, signed by principal
- Must be notarized (Texas Estates Code 751.0021)
- Must specifically enumerate debt collection powers
- Recording with county clerk NOT required
- Remote Online Notarization (RON) is valid under Texas HB 3496

## Statute of Limitations (Texas)

| Debt Type | SOL |
|-----------|-----|
| Written contract | 4 years |
| Promissory note | 4 years |
| Open account | 4 years |
| Oral contract | 4 years |
| Tort claims | 2 years |

Policy: Do not pursue claims past SOL. Running SOL from claim date is standard.

## Service of Process

- Certified mail (restricted delivery) is valid service under TRCP 106(a)(2)
- If mail fails: personal service by sheriff/constable required
- Electronic service NOT valid for initial service in Texas

## FDCPA Compliance

- Validation notice within 5 days of first communication
- Mini-Miranda: "This is an attempt to collect a debt..."
- Cease communication upon written request
- No communication at inconvenient times/places
- No false representations (amount, legal status, identity)
- Debtor validation rights: dispute within 30 days

## TCPSA / DTPA

- Prior express consent required for autodialed calls to cell phones
- Manual dialing only for debt collection
- 3 calls per 7-day period per debtor (consumer debts)
- No calls before 8 AM or after 9 PM local time
- Must identify caller name and purpose

## Data Privacy

- Texas Bus. & Commerce Code 521: breach notification within 60 days
- AG notice required if 250+ affected individuals
- GLBA Safeguards Rule best practices for financial data
- Retention: 7 years financial data, 5 years claims data, indefinite notary records