III. STATE DEBT COLLECTION

Question 1

general

“Debt Collector”

Answer 1

In Texas, common law and statute govern wrongful debt collection. egregious wrongful debt collection is a tort, and all tort damages are recoverable

TDCA (tie-in, usually on the bar): anyone colleting a consumer debt (including lawyers and creditors) is a debt collector under the state law

Question 2

Prohibited Conduct

5

Answer 2

1. List is Exclusive (if not in not applicable)
   Debt Collector’s conduct with respect to the e-mails, even if harassing, does not violate TDCA
2. Threats or Coercion
   threat of arrest, take illegal action, garnish wages, take exempt property
3. Harassment and Abuse
   using profanity and annoying phone calls
4. Unfair or Unconscionable Conduct
   attempting to collect amounts unauthorized
5. Fraudulent, Deceptive, or Misleading Representations
   misleading or deceptive names, deceiving consumers to get info, misrepresenting what can happen
   ***misrepresenting that collector is an attorney

once the consumer notified the debt collector that the debt is in dispute, representing to anyone other than the consumer that the consumer is willfully refusing to pay a nondisputed debt.

Question 3

Enforcement

Answer 3

the consumer is entitled to compensatory damages for pecuniary loss only.

1. Civil Remedies
   a. Actual Damages (all damages recoverable under common law)
   also ***injunctive relief to prevent or restrain a violation of the TDCA;

b. Attorneys’ Fees
D.: same as the DPTA, bad faith or harrasment

c. Minimum Recovery
entitled to not less than $100 for each violation
generally no punitive

2. Remedies Under Other Laws
   TDCA is a tie-in statute thats gives rise to a claim under the DTPA

Question 4

The Texas Insurance Code include a list of unfair settlement practices which include:

Answer 4

(i) Misrepresenting to a claimant a material fact or policy provision relating to the coverage at issue; (ii) failing to provide promptly to a policyholder a reasonable explanation on the basis of the policy for the insurer’s denial of a claim or the offer of a compromise settlement of a claim; and (iii) refusing to pay a claim without a reasonable investigation.

Any settlement practice the trier of fact deems to be unfair is not actionable.