The most common causes of action plaintiffs allege in lawsuits against debt collectors are statutory claims under the federal Fair Debt Collection Practices Act (FDCPA) and the Texas Debt Collection Act (TDCA), as well as common-law tort claims such as unreasonable collection efforts and, less frequently, invasion of privacy. These claims typically focus on allegations of harassment or abuse, false or misleading representations, unfair or unconscionable collection practices, improper communications, and failures to provide required notices or verifications.
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Federal Law: Fair Debt Collection Practices Act (FDCPA)
The FDCPA (15 U.S.C. §§ 1692–1692p) is the primary federal statute regulating third-party debt collectors. It prohibits a wide range of conduct, including:
- Harassment or abuse (e.g., use of obscene language, repeated calls intended to annoy or harass, threats of violence).
- False, deceptive, or misleading representations (e.g., misrepresenting the amount, character, or legal status of a debt; falsely implying government or attorney affiliation; threats of legal action not intended or permitted).
- Unfair or unconscionable means to collect a debt (e.g., collecting unauthorized fees, threatening nonjudicial repossession without a present right).
- Improper communications (e.g., contacting consumers at inconvenient times or places, communicating with third parties, failing to cease communication upon request).
- Failure to provide a written validation notice within five days of initial communication, and failure to cease collection pending verification if the debt is disputed.
The FDCPA provides a private right of action for consumers, allowing recovery of actual damages, statutory damages, and attorney’s fees.
Texas Law: Texas Debt Collection Act (TDCA)
The TDCA applies to both debt collectors and third-party debt collectors in Texas and prohibits:
- Threats or coercion, such as threats of violence, false accusations of crime, threats of arrest or criminal prosecution without proper proceedings, and threats to take illegal actions (Tex. Fin. Code § 392.301).
- Harassment or abuse, including the use of profane or obscene language, anonymous or repeated calls intended to harass, and causing charges without disclosure (Tex. Fin. Code § 392.302).
- Unfair or unconscionable means, such as collecting unauthorized fees or mischaracterizing the nature of the debt (Tex. Fin. Code § 392.303).
- Fraudulent, deceptive, or misleading representations, including misrepresenting the amount or status of the debt, false claims of government or attorney affiliation, and use of deceptive documents or communications (Tex. Fin. Code § 392.304).
The TDCA also requires third-party debt collectors to obtain a surety bond and to comply with specific procedures for disputing debts and correcting records (Tex. Fin. Code § 392.101; Tex. Fin. Code § 392.202). Civil remedies include injunctive relief and actual damages, with statutory minimums for certain violations
7 Common Claims Brought Against Debt Collectors in Texas
1. Harassment or Abuse
People often sue because they feel the debt collector harassed them. This can include:
- Repeatedly calling, especially at odd hours
- Using threatening or abusive language
- Making threats of violence or harm
2. False or Misleading Statements
Another common reason is when debt collectors lie or mislead people about the debt. Examples include:
- Saying you owe more than you actually do
- Pretending to be someone they’re not (like a government official or lawyer)
- Threatening legal action they can’t actually take
3. Unfair Collection Practices
Sometimes, collectors try to collect money or fees that aren’t allowed by law or by your agreement. This can include:
- Adding extra charges that aren’t legal
- Trying to collect on a debt you don’t owe
4. Improper Communication
There are rules about when and how debt collectors can contact you. People sue when collectors:
- Call at inconvenient times (like very early or late)
- Contact you at work after being told not to
- Talk to your family, friends, or employer about your debt without permission
5. Not Providing Required Information
Debt collectors must send you a written notice about the debt and your rights. People sue if collectors:
- Don’t send this notice
- Keep trying to collect after you’ve asked for proof of the debt and they haven’t provided it
6. Unreasonable Collection Efforts (Common Law)
Apart from the laws above, Texas also allows lawsuits if a collector’s behavior is especially outrageous or intended to cause emotional distress. This is called “unreasonable collection efforts.” For example, if a collector keeps harassing you in a way that’s meant to scare or upset you, you might have a case.
7. Invasion of Privacy
If a debt collector goes too far—like constantly calling or sharing your debt information with others—you might be able to sue for invasion of privacy.
Every situation is unique, if you have specific legal questions about your situation, obtain legal counsel.
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