Legal Question in Credit and Debt Law in Texas

Credit Collections in Texas

I have a charged off credit card in the amount of $7500 due to financial hardship (job lay off). At the time of the charge off I worked with all my creditors to work out solutions. This one company would not work out the debt and demanded a lump sum settlement. A collection agency now has the debt and won't accept payments. They are threatening ''further action''. I don't have the lump sum total...only can make small payments. What can they do and how will it affect me? Garnishment of wages or bank accounts or tax refunds? If they file a judgement, how will that affect me?


Asked on 2/23/04, 11:31 am

1 Answer from Attorneys
Sharon Campbell Sharon K. Campbell

Re: Credit Collections in Texas

If you are in Texas, your wages cannot be garnished. (Except by IRS, for child support and federally guaranteed student loans). Secondly, you do not have to deal with a collection agency. Send them a letter telling them to cease and desist from all communications whatsoever with you. Tell them that, pursuant to the Fair Debt Collection Practices Act, you prefer to deal with the original creditor. By law, they must cease communicating with you. If they don't, then you have grounds for a lawsuit against them.

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Answered on 2/23/04, 12:00 pm


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