This article will teach you how to stop debt collectors in Texas from calling you, harassing you, and will show them that you know your rights. Usually by knowing your rights, they will settle for much less. This will save you money in the long run!

1. If you are getting debt collector calls in Texas, the first thing you must do is to make them stop immediately. The law in Texas states that debt collectors MUST stop calling once notified to not call. You must submit this in a letter format or else many debt collectors act like they did not hear you tell them to stop calling. It is important to keep a paper communication open with a debt collector for records.

You must state in your letter the following:
"Under Texas law, and original creditor or debt collector may not contact me by telephone or mail after an official letter of notice is written to them. This is my official notice NOT to contact me by TELEPHONE at my home or place of employment (They do NOT allow it either) or anywhere else.

By law they must stop calling you & calling your place of employment (In Texas). Even if the collector is outside of Texas, they still must follow Texas law to practice debt collection in Texas.

2. You must next get a validation of debt. You can include this in the letter to get them to quit calling. Simply state "I need a validation of this supposed debt as well". "If you can't produce a validation in 30 days, this supposed debt is legally invalid". By law, they must respond in 30 days.

3. If they do respond within 30 days and quit calling, log into the Texas Secretary of state website. There is a debt collector bond search. By law, every single debt collector in Texas is REQUIRED to have a $10,000 surety bond to practice. Many collectors DO NOT meet this bond requirement. If they do not, frankly speaking, the debt collector is now your whipping boy, as they do not have any legal ground to even bother you in Texas. If they are not bonded, DEMAND they stop sending you letters & erase it from your credit or you will notify the Texas Attorney General of their illegal debt collection practices.

The bond requirement is Texas Finance Code Sec 392.101. Be sure to Google it and check it out!

4. If they are bonded, keep sending them back letters in 30 days offering LOW settlement amounts. Perhaps you should offer 10-20% of the debt amount. You must be prepared to pay this if they accept. Be sure not to make "Payments", but just 1 final offer for the entire debt. Use words like "1 time shot to pay debt in full".

OR

You can just keep playing a paper game by offering them 5% then 7%. They'll refuse but you never know if they'll accept in time. This can hurt your credit score.

OR

You can ignore them. In Texas there is no wage garnishment nor can they put a lien on your homestead. (This means they can't come against your home that you own & live in and "take" value from it). There are no debtor's prisons in America either. They can't come after any of your property.

The worst thing that can happen is they can file a lawsuit on you in civil court (Not criminal hence no jail). This does not go on any criminal records either. If they sue you and win, they can levy your bank account. In Texas though, it's perfectly legal to go take all the money out of your bank right before it is levied.

Basically, Texas is a very debt friendly state. You have a LOT of rights on your side. So breathe easy and be glad you live in Texas.

If you are extremely wealthy, have two + homes or own rental properties, a debt collector can get a lien on those.

5. Take it easy, fighting debt collectors in Texas can actually be a fun thing to do. Do not freak out. Debt laws in Texas are on your side. Take the letters with a grain of salt, respond with a brief simple letters with the steps above and they'll know that you know your rights. Sometimes it will save you a lot of money in the long run if you simply stand up for your rights!

This is for CONSUMER / Credit Card debt. If you fail to make payments on cars or your home, they can repossess or foreclose. But they can't take your credit card debt and come after anything you have. Child support debt is completely different than this.-Criminal restitution (payments / fines for crimes committed) is different.