Can debt collectors garnish in Texas?

In Texas, wage garnishment is prohibited by the Texas Constitution except for a few kinds of debt: child support, spousal support, student loans, or unpaid taxes. A debt collector cannot garnish your wages for ordinary debts.

Who is responsible for debt collection in Texas?

Sometimes lenders contract with independent debt collection firms to manage their accounts. This agency has no regulatory authority over these third-party collectors. If you have a complaint about a professional agency or a third-party debt collector, you may wish to call the Texas Attorney General’s Consumer Protection Helpline at 800.621.0508.

Can a debt collection agency sue a LLC?

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your debt collection agency is sued. You can start an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

When does Texas amend the debt collection law?

Texas amends debt collection law to add new requirements for debt buyers. On June 14, 2019, Texas Governor Greg Abbott signed HB 996, which amends Chapter 392 of the Texas Finance Code dealing with debt collection. The amendments are effective September 1, 2019.

What to do as owner of debt collection agency?

As the owner of a debt collection agency you’ll contact debtors and work with them to figure out a way of paying what they owe your clients. You’ll maintain a calm, patient demeanor and make the process as fair and stress-free as possible.

When are you personally liable for LLC or corporate debt?

Overview of Corporate Limited Liability. When you form a corporation or an LLC it becomes a separate legal entity apart from its owners. This means that the business itself can own assets, enter into contracts, and is liable for its own debts.

Can a debt collector go after my business account?

If you have not established a business entity such as an LLC or a corporation, and are doing business under your own name, it will be easier for a debt collector to make the case that you and the business are one and the same and pursue your business accounts in court.

Can a debt collector sue if the Statute of limitations has passed?

If you are sued, and you think the statute of limitations has passed, you may want to consult an attorney. It is a violation of the Fair Debt Collection Practice Act for a debt collector to sue you or threaten to sue you if it knows the statute of limitations has passed.

Can you send a letter to a debt collector saying you Don’t Owe?

You can send a debt collector a letter saying you don’t owe any or all of the money, or asking for verification of the debt.