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Collection Agencies in Texas and Laws

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List of collection agencies in Texas

If you buy Collection Letters service from a Collection Agency, you will have to pay an additional Sales Tax which ranges between 6.25% to 8.25% , applicable to all Texas businesses and residents.

A complete list of federal laws to be followed by all collection agencies in USA are listed here: Debt collection laws 

Texas Debt Collection Laws Summary

  • Texas version of FDCPA applies to all entities attempting to collect a consumer debt not to indulge in fraudulent, abusive, misleading tactics, make repeated or continuous calls. Personal, family and household debts are covered under the FDCPA law.

  • Texas has a four-year Statute of limitations on debts. Statute of limitations is the deadline for filing a lawsuit to recover money. 

  • Wages may be garnished only to pay debts related to court-ordered child support, back taxes, and defaulted student loans. Debt collectors cannot garnish wages for repayment of consumer debt.

  • Debt collectors may report the debt to credit reporting companies or sue a debtor in court.

Texas Debt Statistics

  • The average person in Texas carries over $38,000 in debt.
  • The average Student Loan in Texas is about $31,000.
  • The average mortgage debt in Texas is $177K in 2018.
  • The average credit card debt in Texas as of 2019 is around $9,100
    An average Texan had an auto loan balance of $24,500 as of 2019
  • Texans had an average credit score of 659 in 2018

Texas Geographical Stats

  • Population in Texas: 28.7 million (year 2018)
  • Number of millionaires: 622K  ( year 2018)

Texas debt collection agencies can collect all across the state including these cities Houston, San Antonio, Dallas, Austin, Fort Worth, El Paso, Arlington, Plano and Corpus Christi. Texas is known for its strict consumer protection laws.