Legal Question in Credit and Debt Law in Texas

Re: Collection Agencies

The credit repair agency is NOT correctly stating the law. I would not recommend taking legal advice from a non-lawyer. Ask them if they have a bond on file with the Secretary of State. If they are legitimate, they do, its a requirement by law. You can check with the Secretary of State's office to verify. Most credit repair agencies are scams. A collection agency buying old debt does NOT extinguish the debt of the debtor. If the collection agency buys the debt, it is true that you must deal with them and cannot go back to the original debtor but, again it does NOT extinguish the debt. If a collection agency buys a debt, they are legally entitled to collect the debt; the fact that they purchased the debt after it was in default makes them a debt collector and subject to the Fair Debt Collection Practices Act. They can call you, send letters, and even file suit up to the time the statute of limitations expires (In Texas the statute of limitations for suit on a debt is four years) It can be reported on your credit report for seven years from the date of last activity. I would not put much credit in anything told you by a credit repair agency.