TDCA: Texas Debt Collector Act

Makes certain debt collection practices illegal, whether someone is

collecting a debt on their own behalf or on someone elses behalf.
Prohibits unfair, abusive and deceptive practices by debt collectors &
is
Broader in scope than the federal debt collection statute, which only
covers third party debt collectors.
The Texas Debt Collection Act also applies to creditors collecting their
own debts.

Who it applies to: Anyone collecting debts for consumer goods (inc. attnys)
Consumer goods are those that are for personal, household, or family
purposes. (gym membership= personal purpose)
Prohibited conduct by debt collectors includes:
1) Threats or Coercion including:
Threat of arrest;
Threat to take action prohibited by law;
Threat wage garnishment;
Threat to take exempt property
Threat to put someone in jail without legal process
2) Harassment and Abuse including:
Profanity
Annoying telephone calls/voicemails
Harassing letters through the mail system (but not email)
3) Fraudulent, Deceptive or Misleading Representation
Misleading or deceptive names; Deceiving consumer to get information;
Misrepresentation what can happen to consumer; Misrepresenting that
you are an attorney; Creditor has no liability unless it had knowledge of
collectors activities
4) Unfair or unconscionable conduct
Criminal penalty: misdemeanor, fined
Civil remedies:
1) Actual damages
2) Injunctive relief (equitable) or actual damages
3) Winning P entitled to reasonable attorneys fees; but if bad faith or
harassment, award D attnys fees.
4) Minimum recovery $100 for each violation: successful action for failure to
maintain a bond, or failure to properly review accuracy of information in a file
or use of threats or coercion
Note- The TDCA is what is referred to as a tie-in-statute, as in it indicates that
1. Business Opportunity Act (seller promises to sell buyer goods to start a
business)
2. Contest and Giveaway Act (gets consumer to attend sales presentation)
3. Debt Collection Act (MOST POPULARLY TESTED)
4. Home Solicitation ACT (2nd Most Popularly Tested)
5. Health Spa Act (3 days to rescind transaction)
6. Credit Service Organizations
7. Removal of Unauthorized Vehicles from Parking Facility (towing law)
8. Rental-Purchase Agreements
9. Representation as Attorney (notary can't pretend to be lawyer)
10. Manufactured Housing Standards Act (mini-DTPA for mobile homes)
11. Unfair Claims Settlement Practices Act
12. Regulation of Telephone Solicitation
* Assume Tie-In Statute If Unsure

CONSUMER LAW ESSAY

There are 3 types of
questions
1. Pure DTPA
2. Combo DTPA and
Insurance
3. DTPA and Debt
Collection
#1 Go through 5 steps on
sheet
#2 Go through 5 steps +
back
remember actual &
economic damages
What are the 3 possible
claims that can be
brought using a tie-in
statute?
Violation of the
TDPCA- get actual
damages without
punitive
Violation of pure DTPAeconomic and maybe
mental anguish (if
know)
Tie-in through DTPAget actual damages
and maybe up to 3X if
knowingly
When tie-in statute, 3
claims exist:
1. Pure DTPA claim
2. Pure "TX Law" Act claim
3. Tie-in statute established