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Tex. Fin. Code ch. 392, §§ 392.301–392.306, 392.401, 392.403, 392.404

The Texas Debt Collection Act — the statute that reaches the original creditor

A claim in Texas district and county courts · Last verified August 26, 2026

Texas has its own debt collection statute, and it is broader than the federal one in the way that matters most: it applies to the original creditor, not only to third-party collection agencies. The company that sold you the car can violate the TDCA. So can your mortgage servicer.

The second thing to know is the tie-in. A violation of the TDCA is a deceptive trade practice by statute, which pulls the DTPA's remedies across — treble damages for knowing conduct and mandatory attorney's fees for a prevailing consumer.

What the claim is

A collector or creditor harassed you, lied about what you owe, threatened something it could not legally do, or reported false information about the debt.

Where the right comes from

Statute — Finance Code chapter 392. The common-law claim for unreasonable collection efforts runs alongside it and is judge-made.

What a plaintiff has to prove

  1. The debt is a consumer debt — an obligation primarily for personal, family or household purposes.
  2. The defendant is a debt collector or creditor within § 392.001. This includes a person collecting on their own debt, which is what separates the TDCA from the federal act.
  3. The defendant committed a prohibited act under §§ 392.301–392.306.
  4. Injury to the plaintiff.

The prohibited acts fall into four groups:

  • Threats or coercion (§ 392.301) — threatening arrest, threatening to seize property without a court order or legal right, threatening to take an action prohibited by law.
  • Harassment or abuse (§ 392.302) — repeated calls intended to harass, obscene language, anonymous calls.
  • Unfair or unconscionable means (§ 392.303) — collecting charges not authorised by the agreement or by law.
  • Fraudulent, deceptive or misleading representations (§ 392.304) — misrepresenting the amount or status of the debt, using a name other than the collector's true name, falsely implying a government connection or an attorney's involvement.

Unreasonable collection efforts

The common-law claim requires far more: a course of harassment that was wilful, wanton and malicious and intended to inflict mental anguish or bodily harm. It is a high standard, and the statutory claim is easier.

How long you have to file

The TDCA sets no limitations period of its own.

A claim brought through the DTPA tie-in carries the DTPA's two-year period under Business and Commerce Code § 17.565. A standalone TDCA claim is generally governed by the four-year residual in CPRC § 16.051.

Because most TDCA claims are pleaded through the tie-in to reach treble damages and fees, treat two years as the operating deadline.

The common-law unreasonable collection efforts claim runs two years under CPRC § 16.003(a).

What has to happen before you file

Nothing for the statutory claim standing alone.

To recover through the DTPA tie-in, the 60-day written pre-suit notice required by Business and Commerce Code § 17.505 applies, stating the complaint and the damages and fees claimed. Skipping it lets the defendant abate the case.

What the claim pays

Actual damages, including mental anguish, which Texas courts allow in TDCA cases without proof of physical injury.

Injunctive relief under § 392.403(a) — a court can order the conduct stopped.

Attorney's fees under § 392.403(b), reasonably related to the amount of work performed.

Through the tie-in, the DTPA's remedies: economic damages, mental anguish, up to treble damages for knowing conduct, and mandatory attorney's fees to a prevailing consumer under § 17.50(d).

Who can be sued

  • Third-party collection agencies.
  • The original creditor, collecting its own debt.
  • Mortgage servicers, which is where a large share of Texas TDCA litigation sits.
  • Debt buyers.
  • Attorneys collecting debts, who are debt collectors when doing so.

Common defenses

  • Bona fide error under § 392.401. A defendant is not liable if the violation resulted from a bona fide error that occurred despite procedures reasonably adapted to avoid it.
  • Not a consumer debt — a business debt is outside the chapter.
  • No prohibited act. Persistent lawful collection is not harassment.
  • No injury.
  • Limitations.
  • Federal preemption in narrow circumstances.

What people get wrong

The TDCA is broader than the federal law. People assume the original creditor cannot be sued for collection conduct. Under Texas law it can.

Trebling is not automatic. It requires a finding that the conduct was knowing.

Mental anguish still has to be proved. Texas allows it, but with evidence of a substantial disruption in daily routine, not merely annoyance.

Being sued on a time-barred debt is its own violation. Section 392.307, added in 2019, bars a debt buyer from suing or initiating arbitration on a consumer debt after the limitations period in CPRC § 16.004 has expired, and restricts reviving an expired period through a payment.

Where it came from

Texas enacted its debt collection statute in 1973, the same session that produced the DTPA, and built the tie-in between them from the start. The federal Fair Debt Collection Practices Act followed in 1977 and stopped at third-party collectors — a line the Texas act never drew.

The Fair Consumer Debt Collection Act of 2019 added § 392.307, aimed at the practice of suing on debts whose limitations period had run and at collectors who sought to restart the clock with a small payment.

Common questions

How long do I have to sue under the Texas Debt Collection Act?

Two years if you are proceeding through the DTPA tie-in, which most claims do. A standalone TDCA claim is generally governed by the four-year residual period.

Can I recover attorney's fees?

Yes. Section 392.403(b) provides for them, and the DTPA tie-in makes them mandatory for a prevailing consumer.

Can I sue the company I owe the money to?

Yes. Unlike the federal statute, the TDCA reaches a creditor collecting its own debt.

Does it cover my mortgage servicer?

Often. Servicers are among the most frequent TDCA defendants in Texas.

Can I get triple damages?

Through the DTPA tie-in, yes, where the conduct was knowing.

They sued me on an old debt. Is that a violation?

It can be. Section 392.307 bars a debt buyer from suing on a consumer debt after the limitations period has expired.

Where these rules live

How this page is sourced. The statutory language quoted here is reproduced from the official text at Tex. Fin. Code ch. 392, §§ 392.301–392.306, 392.401, 392.403, 392.404. Court decisions are named for what they hold, not quoted from any commentary. The procedural rules referred to are reproduced verbatim on their own pages on this site. Everything else is original writing. Last verified August 26, 2026.
This page explains what the law says. It is legal information, not legal advice, and it cannot tell you whether you have a claim. Filing deadlines are short, several of the prerequisites below cannot be cured once missed, and the law in your circuit may differ — if the outcome matters, talk to a lawyer.