The Lone Star state is the second largest in our nation. Only Alaska is larger. When it come to Texas credit card laws, they get first place laws they have set up to protect the consumer. These companies have very few ways in which they can collect against bad debt.

When a person chooses to charge an item using plastic, it is known as an unsecured debt. If you purchase a car with a bank loan, the car is the collateral against the money you owe. In this case it can be repossessed if the payments are not made. This is not the case when purchases are made using revolving credit.

Garnishment of wages are also prohibited. Federal law states that creditors can take up to 25% of a person’s disposable earnings. Our Lone Star state is one of the few states that opted out of this law. Garnishing wages is only allowed when a person defaults on child support or owes Federal money in back taxes. Student loans can also be collected through garnishment.

There are also strict laws against taking possession or placing a lien on a person’s home. In fact, your home cannot be touched unless you default on your mortgage or line of equity; owe taxes to the federal government; or you fail to pay a contractor. These are the only conditions under which a lien can be placed against your residence.

The one option a credit company has is the opportunity to attach any funds that you may have in a savings account. Even then, this can only be done if the debtor has failed to file bankruptcy. The Texas laws are so difficult to work around, most creditors will try and negotiate a deal in the hope the debtor will be able to repay some of the funds owed them.

Collector’s, their agent’s, or representative’s are all forbidden to harass the debtor. Scare tactics are also against the law. These could involve threats to garnish wages or put a lien on your home, neither of which they can do. Any phone calls that result in the debtor having their phone ringing constantly is also considered harassment. In these cases the debtor can have these people fined up to a maximum of $500.00 per occurrence. The individual has a full year in which to file these charges.

A debtor has the right to press charges against any company or its representatives if they use any of the methods listed to secure payment of a debt. The Texas Finance Code must be strictly adhered to at all times. It is a person’s responsibility to pay the debts that they owe, but in Texas credit card laws are extremely hard to enforce against the person owing the money.

Click here for more information on Credit Card Lawsuit and Credit Card Lawsuits and Credit Lawsuit

Categories : Lora's Posts