Texas Residents Tool for Fighting CA's who fail to Validate or Respond

[walterg55]

CHAPTER 392. DEBT COLLECTION Texas law requires CA's and CRA's to take some direct action within certain time frames or be in violation. I read over and over where a Ca or CRA has failed to respond to a dispute request. This gives a Texas resident some serious firepower and the penalites are quite painful for the CA's and CRA's since treble damages under the Texas Deceptive Business Practice Chapter are also allowed.

§392.202. CORRECTION OF THIRD-PARTY DEBT COLLECTOR'S OR CREDIT BUREAU'S FILES. (a) An individual who disputes the accuracy of an item in a third-party debt collector's or credit bureau's file on the individual may notify in writing the third-party debt collector or credit bureau of the inaccuracy. The third-party debt collector or credit bureau shall provide forms for the notice and, when requested, assist an individual in preparing the notice.

( Not later than the 30th day after the date a notice of inaccuracy is received, the third-party debt collector or credit bureau shall send a written statement to the individual:

(1) denying the inaccuracy;

(2) admitting the inaccuracy; or

(3) stating that the third-party debt collector or credit bureau has not had sufficient time to complete an investigation of the inaccuracy.

? If the third-party debt collector or credit bureau admits that the item is inaccurate, the third-party debt collector or credit bureau shall:

(1) not later than the fifth business day after the date of the admission, correct the item in the relevant file; and

(2) immediately on correction of the item send to each person who has previously received a report from the third-party debt collector or credit bureau containing the inaccurate information notice of the inaccuracy and a copy of an accurate report.

(d) If the third-party debt collector or credit bureau states that there has not been sufficient time to complete an investigation, the third-party debt collector or credit bureau shall immediately:

(1) change the item in the relevant file as requested by the individual;

(2) send to each person who previously received the report containing the information a notice that is equivalent to a notice under Subsection ? and a copy of the changed report; and

(3) cease collection efforts if the item involves a debt.

(e) On completion by the third-party debt collector or credit bureau of the investigation, the third-party debt collector or credit bureau shall inform the individual of the determination of whether the item is accurate or inaccurate. If the third-party debt collector or credit bureau determines that the information was accurate, the third-party debt collector or credit bureau may again report that information and resume collection efforts

[SecretAgentWoman]

Does it specify anywhere if you can sue for monetary damages?

[walterg55]

Yes it does and even better it opens the CA up to treble damages, attorneys fee's and huge fines ie; $20,000

Relevant sections are Chapter 392 Texas Finance Code and Chapter 17 Deceptive Trade Practices Act (DCPT), easily googled

We have discussed this extensively on another board and it is a silver bullet for Texas residents since it has real teeth and compels action unlike the Feds.

[ocn2000]

I live in Texas too. I have found alot of "neat" things in the Texas Business and Finance code. It helps to file suit under these codes, rather than federal. That way CA/OC/CRA's can not have the suit removed to federal court, which intimidates some people. I don't have the deatails, but CA's must also have a bond to posted with the secretary of state in order to collect in Texas, with a fine availible for violations. The treble damages is in there too.

[walterg55]

Right, I should have mentioned that is applicable to those nasty CRA's who won't act or do what they are required to do.

[SecretAgentWoman]

I'm so going to do more research.

Does anyone know of a good link for this?

[walterg55]

http://www.occc.state.tx.us/pages/Legal/Laws/fcode/ch392.html

Chapter 392

http://tlo2.tlc.state.tx.us/statutes/docs/BC/content/htm/bc.002.00.000017.00.htm

Chapter 17

http://www.supreme.courts.state.tx.us/rules/trcphome.asp

TX Rules of Civil Procedure

http://tlo2.tlc.state.tx.us/statutes/cp.toc.htm

TX Civil Practice & Remedies

[SecretAgentWoman]

Wow, Walter...I like you! lol

[walterg55]

[IHateCAs]

Texas has some very good statutes for this type of thing.

[SecretAgentWoman]

This should be stickied!

[walterg55]

I also like this Texas statute:

§392.306. USE OF INDEPENDENT DEBT COLLECTOR. A creditor may not use an independent debt collector if the creditor has actual knowledge that the independent debt collector repeatedly or continuously engages in acts or practices that are prohibited by this chapter.

Experts & Attorneys; How would I find information sufficient to support a letter to an OC.

I suspect that the practical application of this would be that the OC would find a new CA but 1. nice kick in the teeth to a slimeball and 2. might be useful leverage to sue the OC for a violation as a settlement tool. Thoughts?