Texas Debt Collection Law

03-0905 / November 2003
Texas Debt Collection Law

Ms. Karen D. Waterman
Vice President, Internal Audits and Compliance
Kirtland Federal Credit Union
P.O. Box 80570
Albuquerque, NM 87198-0570

Re: Texas Debt Collection Law.

Dear Ms. Waterman:

This letter supplements an earlier letter to you dated November 26, 2003 (OGC Legal Opinion 03-0905), that responded to your question of whether credit unions outside of Texas must comply with the Texas Debt Collection Act (TDCA). Tex. Fin. Code Ann. §§392.001 et seq. (Vernon 1998). Your letter was prompted by an amendment to the TDCA, effective on September 1, 2003, that imposes certain disclosure obligations on creditors pursuing the collection of overdue debts.

We have learned that the Texas legislature amended the TDCA during a subsequent special session. The amendment, which becomes effective on January 11, 2004, makes the disclosure obligation discussed in OGC Legal Opinion 03-0905 applicable only to third party debt collectors. 2003 Tex. HB 7, Art. 28. As a result, after that date, the TDCA disclosure requirement will not apply to a creditor (including a federal credit union) acting on its own behalf in collecting an overdue debt.


Sheila A. Albin
Associate General Counsel


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