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Debt Collection

Debt collection rights under Texas and federal laws.

Texas & Federal Law

Understanding the Parties

Once an overdue debt goes to collections, there might be more parties involved than just the person who owes the money (the debtor) and the person or entity to whom they owe it (the creditor).

Third-party debt collectors attempt to collect a debt on behalf of the creditor. Debt buyers will purchase the right to collect a debt from the original creditor and try to collect it for themselves. Recent cases have found that debt buyers qualify as debt collectors under federal law.

Because the law covers different parties in different ways, it's important to understand who's who.

Original Creditors

Third-Party Debt Collectors

Debt Buyers

Charged-Off Debt

Charged-off debt is debt that the original creditor has given up hope of collecting. However, just because a debt has been charged-off does not mean that you no longer owe it.

In many cases, debt buyers will purchase the rights to collect charged-off debt from the original creditor. If this happens, you owe the debt to the debt buyer instead of the original creditor.

About Debt Collection

Several agencies and organizations have compiled pages with general information about debt collection and your rights when dealing with debt collectors. Please see the following links for more information:

E-Books

Texas residents can access library e-books with a free library account.

Who can I contact?

There are several state and federal agencies that can provide more information about your rights concerning debt collectors. These agencies will also allow you to file complaints.

Note The library cannot tell you what the law means for your situation.

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