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Texas Disputed Account Summary


Summary of Dispute Process

Disputed Consumer Accounts that fall under the Texas Debt Collection Practices Act Art 5069-11.07a-.

If an individual disputes the accuracy of an item, the creditor, debt collector, or attorney attempting to collect a debt should give written notice to the consumer acknowledging the consumers dispute, and explain to the consumer that collection efforts have ceased on any disputed portion of the alleged debt, and furthermore advise the consumer that the claim is being investigated. The creditor, debt collector, or attorney attempting to collect the debt should provide a dispute form to the consumer, and assist the consumer in summarizing such dispute when requested to do so. Within thirty (30) days after the dispute is received by the creditor, debt collector, or attorney attempting to collect the debt, the creditor, collector, or attorney attempting to collect the debt must send the consumer a written notice stating they are:

  1. Denying the accuracy of the debt or,

  2. Admitting the accuracy of the debt or,

  3. Stating they have not had enough time to complete the investigation and they are requesting more time to do so.

If the dispute is found to be accurate, within five (5) days the creditor, debt collector, or attorney attempting to collect the debt must correct the item in its file and correct the consumers Credit Bureau Report status (if applicable), and notify any and all others involved in attempting to collect the debt of such (if applicable.)

If the dispute was being investigated and the claim was latter found to be inaccurate, the creditor, debt collector or attorney attempting to collect the debt should send a notice to the consumer "Denying the accuracy of the debt," close the account, and within five (5) days correct the item in its file and correct the consumers Credit Bureau Report status (if applicable), and notify any and all others involved in attempting to collect the debt of such (if applicable.)

Art. 5069-11.08. Bona fide error

No person shall be guilty of a violation of this Act in the action complained of resulted from a bona fide error notwithstanding the use of reasonable procedures adopted to avoid such error.

Notes of Decisions

Under this article, reasonable procedures must be adopted to avoid error before a bona fide error will be excused. See example: Central Adjustment Bureau, Inc. v. Gonzales (Civ.App.1975) 528 S.W.2nd 314.

Art. 5069-11.09. Penalties

Any person who violates a provision of the Act is guilty of a misdemeanor, and upon conviction is punishable by a fine of not less than $100.00 nor more than $500.00 for each violation. Such misdemeanor charge must be filed within one year of the date of the alleged violation.

Comments: The statute of limitations for criminal charges under this Section is one year.

Art. 5069-11.10. Civil remedies

(a) Any person may seek injunctive relief to prevent or restrain a violation of this Act and any person may maintain an action for actual damages sustained as a result of a violation of this Act. A person who successfully maintains such action shall be awarded attorney’s fees reasonable in relation to the amount of work expended and costs. On a finding by the court that an action under this section was brought in bad faith or for purposes of harassment, the court shall award to the defendant attorney’s fees reasonable in relation to the work expended and costs.

(b) When the attorney general has reason to believe that a person is violating or is about to violate a provision of this Act, the attorney general may bring an action in the name of the state against the person to restrain or enjoin the person from violating this Act.

(c) A person who successfully maintains an action under this article for violation of Article 11.02 (c) or 11.07A of this act shall be awarded at least $100. for each violation of this Act. Subsec. (c) added by Acts 1993, 73rd leg., ch. 813, § 2, eff. Sept. 1 1993.

Presumptions and burden of Proof

A party seeking to recover damages under this chapter is not required to show intent on part of wrongdoer, but merely that harm incurred was a reasonable foreseeable result of wrongdoer’s conduct. Case example: Brown v. Oaklawn Bank (Sup.1986) 718 S.W.2nd 678.


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