61 lines
2.2 KiB
Markdown
61 lines
2.2 KiB
Markdown
# 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
|