Texas debt collection laws
By Kai Greenspan, Founding Editor · Last updated: July 12, 2026
This page is educational information, quoted from public statutes with sources and dates. It is not legal advice; how the law applies to a specific debt depends on its facts, and a consumer attorney or legal aid service is the right place for advice.
What is the Texas bond rule for debt collectors?
Texas does not license collectors; it bonds them. Finance Code Section 392.101 states: "A third-party debt collector or credit bureau may not engage in debt collection unless the third-party debt collector or credit bureau has obtained a surety bond issued by a surety company authorized to do business in this state... A copy of the bond must be filed with the secretary of state." The bond must be in favor of "any person who is damaged by a violation of this chapter", which makes it a financial guarantee standing behind the collector's conduct, not a formality. The filing is public: anyone can check any collector on the Secretary of State's Debt Collector Search, and our five-minute verification guide walks through it. Every agency listed in our Texas directory has been checked against that register, with its filing history shown on its profile.
Texas Finance Code Section 392.101, checked July 12, 2026.
What conduct does Texas prohibit in debt collection?
Chapter 392 defines three families of prohibited conduct, and its language is direct. Section 392.301 (threats or coercion): a debt collector may not use "threats, coercion, or attempts to coerce", including "using or threatening to use violence or other criminal means to cause harm to a person or property of a person" and "accusing falsely or threatening to accuse falsely a person of fraud or any other crime". Section 392.302 (harassment; abuse): a collector may not "oppress, harass, or abuse a person", including "using profane or obscene language", placing calls "without disclosing the name of the individual making the call and with the intent to annoy, harass, or threaten", or "causing a telephone to ring repeatedly or continuously". Section 392.304 (fraudulent, deceptive, or misleading representations): a collector may not "use a fraudulent, deceptive, or misleading representation", including collecting under a name other than its "true business or professional name".
Federal law adds Regulation F on top, including presumption limits on call frequency; our guide to how collection agencies workcovers those federal conduct rules.
Texas Finance Code Sections 392.301, 392.302, 392.304, checked July 12, 2026.
Can a collector add fees to a Texas debt?
Only with authorization. Section 392.303(a)(2) prohibits "collecting or attempting to collect interest or a charge, fee, or expense incidental to the obligation unless the interest or incidental charge, fee, or expense is expressly authorized by the agreement creating the obligation or legally chargeable to the consumer". The test is authorization, not amount, and the federal FDCPA applies the same rule nationwide. The business side of this same question, what creditors should put in their contracts, is covered in ourfees and contracts guide.
Texas Finance Code Section 392.303, checked July 12, 2026.
How old is too old? The four-year rule and debt buyers
Two statutes matter. First, the general limitations period: Civil Practice and Remedies Code Section 16.004 requires "suit on the following actions not later than four years after the day the cause of action accrues", and item (3) on that list is "debt". Second, a Texas rule specific to debt buyers, companies that purchase debts rather than collect them for others, added in 2019: Finance Code Section 392.307 provides that a debt buyer "may not, directly or indirectly, commence an action against or initiate arbitration with a consumer" after the limitations period expires, and that a time-barred claim "is not revived by a payment of the consumer debt, an oral or written reaffirmation of the consumer debt, or any other activity on the consumer debt". More generally, Section 16.065 makes an acknowledgment of a time-barred claim effective against limitations only if it "is in writing and is signed by the party to be charged". When a specific period started or paused on a specific account is a legal question for an attorney.
Worth knowing alongside this: our directory lists third-party collection agencies only, never debt buyers, and our methodology explains how we verify the difference from primary sources.
Civil Practice and Remedies Code Sections 16.004 and 16.065 and Finance Code Section 392.307, checked July 12, 2026.
What are my dispute rights in Texas?
State and federal rights stack. Texas Finance Code Section 392.202 gives an individual who "disputes the accuracy of an item" in a third-party debt collector's file the right to notify the collector in writing, which triggers the statute's investigation and correction duties. Federally, Regulation F requires collectors to provide a validation notice stating the debt's details and your dispute rights, and theCFPB publishes sample lettersfor requesting information before paying anything.
Texas Finance Code Section 392.202, checked July 12, 2026.
What happens to collectors who break these rules?
Chapter 392 has teeth in three directions. Criminal: Section 392.402 makes a violation "a misdemeanor punishable by a fine of not less than $100 or more than $500 for each violation". Civil: under Section 392.403, "a person may sue for... injunctive relief to prevent or restrain a violation of this chapter" and "actual damages sustained as a result of a violation", with attorney's fees for a successful claim; the attorney general may also "bring an action in the name of this state" to restrain violations, and Section 392.404 makes a violation "a deceptive trade practice" actionable under Texas consumer-protection law. The surety bond exists precisely so a damaged person has something to claim against. Reputational: regulators publish concluded enforcement, and our agency profiles carry apublic enforcement record section whenever a regulator has formally acted, reported from the regulator's own documents.
Texas Finance Code Sections 392.402, 392.403 and 392.404, checked July 12, 2026.
Common questions about Texas debt collection law
What is the statute of limitations on debt in Texas?
Four years. Texas Civil Practice and Remedies Code Section 16.004 requires suit on a debt to be brought "not later than four years after the day the cause of action accrues." Separately, for debt buyers specifically, Texas Finance Code Section 392.307 (effective September 1, 2019) prohibits suing or initiating arbitration on a consumer debt after that period expires, and states that a time-barred claim "is not revived by a payment of the consumer debt, an oral or written reaffirmation of the consumer debt, or any other activity on the consumer debt." Exactly when a limitations period starts or pauses depends on the facts of the account, which is a question for a lawyer, not this page.
Can a debt collector in Texas add fees to what I owe?
Only if the original agreement or the law authorizes it. Texas Finance Code Section 392.303(a)(2) prohibits "collecting or attempting to collect interest or a charge, fee, or expense incidental to the obligation unless the interest or incidental charge, fee, or expense is expressly authorized by the agreement creating the obligation or legally chargeable to the consumer." The federal FDCPA (15 U.S.C. Section 1692f(1)) applies the same test to consumer debts nationwide.
What debt collection practices are illegal in Texas?
Texas Finance Code Chapter 392 prohibits three families of conduct, each defined in the statute: threats or coercion (Section 392.301, for example threatening violence or falsely accusing a person of a crime), harassment and abuse (Section 392.302, for example profane language or causing a telephone to ring repeatedly with intent to harass), and fraudulent or misleading representations (Section 392.304, for example collecting under a false business name). The federal FDCPA and Regulation F add further rules, including limits on call frequency. Each section is quoted and linked above.
Do debt collectors need a license to operate in Texas?
Texas does not issue a collection license. Instead, every third-party debt collector must file a $10,000 surety bond with the Texas Secretary of State before collecting, under Texas Finance Code Section 392.101. Bonded collectors appear on the Secretary of State’s public Debt Collector Search, which anyone can check for free; our step-by-step verification guide shows how.
Can I dispute a debt a Texas collector says I owe?
Yes, on both state and federal law. Texas Finance Code Section 392.202 gives an individual who "disputes the accuracy of an item" in a third-party debt collector’s file the right to notify the collector in writing, which triggers investigation duties. Federally, Regulation F requires the collector to provide a validation notice with the debt’s details and dispute rights. The CFPB publishes sample dispute letters on its own site.
Is violating the Texas debt collection law a crime?
It can be. Texas Finance Code Section 392.402 makes a violation of Chapter 392 an offense: "a misdemeanor punishable by a fine of not less than $100 or more than $500 for each violation." Chapter 392 also provides civil remedies (Section 392.403: injunctive relief, actual damages and attorney's fees, with the attorney general also empowered to act), and Section 392.404 makes a violation an actionable deceptive trade practice. This is one of the reasons the surety bond and the public register exist.
Related pages
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Wage garnishment in Texas
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Verify a Texas bond
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Texas rules and rankings
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