Texas debtors often default on their repayment plans due to financial duress. Collection agencies have the legal right to initiate collection cases in order to be paid monies owed. Debtors who are overwhelmed by their indebtedness may have the legal right to declare bankruptcy.
Debtors also have other legal recourse provided by Texas state laws to counter zealous and aggressive debt collection tactics. Debtors often consult professional attorneys as well as financial experts in these cases to help protect themselves against aggressive debt collection tactics, which can often include harassment as well as wage garnishment and seizure of assets without the proper authorization.
The Consumer Financial Protection Bureau has reported that the elderly, those older than age of 62, are one of the most vulnerable age brackets for this kind of debtor harassment by collection agencies. Studies conducted have shown that collection agencies often harass debtors for an amount of debt that is not even a correct figure. Inflated debt amount is an example of an unlawful and fraudulent activity by a debt collection agency which can be reported by the debtor. A debtor's attorney can often raise a case in court against this kind of wrongful harassment.
In other cases, debt collection agencies continue to harass debtors long after the statute of limitation for debt repayment has expired. In such cases, the debtor has the legal right to initiate a complaint against the debt collection agency. Debt collection agencies have numerous restrictions that must be followed and that are also designed to protect the debtor's rights.
Debt collection agencies are not permitted to call contact a debtor by phone at the person's workplace nor are they permitted to call a debtor before 8:00 a.m. in the morning or after 9:00 p.m. at night. If a debt collection agency violates any of these laws, the debtor's attorneys can file a lawsuit against the debt collection agency for harassment.
Source: Forbes.com, "How to deal with debt collectors," Nick Clements, June 22, 2015