Legal Question in Consumer Law in Texas

Failing to pay a debt is not a crime, and you can't be prosecuted for it.

You can sue this jerk for lying to you - it's actionable when someone threatens to take legal action against you that isn't allowed by law.

Go to the nearest Radio Shack and tell them you want to start recording your phone calls. Let them show you what equipment is available.

And if you ever talk to these bums on the phone, RECORD IT. You don't need their permission, and you don't even have to tell them you're doing it.

One tip: You need to figure out a way to "date stamp" each recording, because you'll forget later (you'll listen to the recording and wonder, "When was THAT conversation?"). What I usually do is leave the recorder on after the conversation is over and I say, in a clear voice, "The previous recording was made on June 3, 2011 at 3:11 pm."

Tell these clowns that you'll pay them when you can. Give THEM the terms - tell them you'll send them $50 per month on the tenth of each month. If they don't like it, tell them, "Okay, I won't pay you at all."

If you can get a recording of someone threatening you with criminal prosecution, try to get his name, and ask for the address where he's located. Then sue the company under the Fair Debt Collection Practices Act.