Not every collection problem is a barrage of phone calls. Some of the most damaging conduct is quieter: a balance that grew with fees you never agreed to, a letter that overstates what you owe, a lawsuit over an account someone else opened in your name. For people in Austin, Round Rock, Pflugerville and San Marcos, federal and Texas law treat these misrepresentations as seriously as harassment.

Texas Debt Law represents consumers in Austin, a city of nearly 1 million people that sits mostly in Travis County, with smaller portions in Williamson and Hays counties. We bring claims under the federal Fair Debt Collection Practices Act (FDCPA) and the Texas Debt Collection Act (TDCA), and we work with clients by phone, text and email. If a collector misrepresented your debt or treated you unfairly, you may have a claim. The first review is free.

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When the Balance Is Wrong: Unauthorized Interest, Fees and Amounts

A collector may only collect what your agreement or the law allows. Both statutes say so directly:

The FDCPA bars collecting any amount, including interest, fees and charges, unless it is expressly authorized by the agreement creating the debt or permitted by law (15 U.S.C. § 1692f(1)), and bars false representations of the character, amount or legal status of a debt (§ 1692e(2)(A)).
The TDCA prohibits collecting interest or incidental charges not expressly authorized by the agreement or legally chargeable to you (Tex. Fin. Code § 392.303(a)(2)), and misrepresenting the character, extent or amount of a consumer debt (§ 392.304(a)(8)).

Regulation F gives you a tool to spot the problem: the validation notice must itemize interest, fees, payments and credits since a specific itemization date (12 C.F.R. § 1006.34). Compare it with your last statements from the original creditor. If the numbers don't reconcile, dispute in writing within the 30-day validation window (15 U.S.C. § 1692g(b)).

Not every statement about interest is a violation. In Salinas v. R.A. Rogers, the Fifth Circuit held that a letter saying the amount "may be greater" if interest or charges accrue was not misleading, even though none could accrue on that account. The strongest claims involve concrete misstatements of what you owe. Our Q&A on whether a collector can add fees explains the basics.

Debts That Aren't Yours: Identity Theft and Mistaken Identity

Collectors sometimes pursue the wrong person, or a debt opened by an identity thief. Texas added a specific protection in 2025: once a creditor or collector receives a court order declaring you an identity-theft victim under Business & Commerce Code § 521.103 (or a similar law), it must stop collecting the resulting debt, notify everyone it reported the debt to that the debt is disputed and not collectible from you, and may not sell the debt except to pursue the thief (Tex. Fin. Code § 392.308). Our update on House Bill 4238 covers the details, including exceptions.

Even without a court order, a collector that keeps insisting you owe a debt after receiving information showing it isn't yours may be misrepresenting the debt. Keep copies of your police or FTC identity theft report and everything you send the collector.

When the Collector Is a Law Firm

Many Austin consumers first hear from a collector through a law firm's letter or a lawsuit. Lawyers who regularly collect consumer debts, including by filing suits, can be "debt collectors" under the FDCPA and must follow it. See our Q&A on whether a collection law firm can be a debt collector. Among other things, the FDCPA requires a collector suing on a consumer debt to file in the judicial district or similar legal entity where you signed the contract or where you live when the suit is filed (15 U.S.C. § 1692i(a)(2)). Threatening attorney's fees that cannot legally be recovered can also violate § 1692e, as the Fifth Circuit recognized in Calogero.

Checking a Collector's Texas Bond and Reporting Conduct

Third-party debt collectors must have a $10,000 surety bond on file with the Texas Secretary of State before collecting in Texas (Tex. Fin. Code § 392.101). You can look up a company in the Secretary of State's Debt Collector Search; the Secretary of State's FAQ for debt collectors explains the requirement. A collector operating without a bond may be violating the TDCA, and that is one of the violations for which the statute sets a minimum recovery. You can also submit a complaint about a collector to the Consumer Financial Protection Bureau. A complaint is not a lawsuit, though, and it does not stop the FDCPA's one-year clock.

Courts for Travis, Williamson and Hays Counties

Under 28 U.S.C. § 124, the Austin Division of the U.S. District Court for the Western District of Texas covers Travis, Williamson and Hays counties, along with Bastrop, Caldwell, Burnet and others. So whichever county your part of Austin is in, a federal FDCPA claim would generally be heard in Austin. That is where we file these claims, as a separate lawsuit against the collector, with any TDCA claim based on the same conduct included.

A collection suit is usually filed in the county where you live. Travis County has five justice of the peace precincts, which hear claims up to $20,000; residents of the Williamson or Hays County parts of the city would generally be sued in those counties. The answer deadline is the end of the 14th day after service in justice court, or 10:00 a.m. on the Monday after 20 days in county or district court. Use our answer deadline calculator. Answering and defending the suit is a debt defense matter that our Austin debt defense attorneys handle. If the collector's conduct also broke the FDCPA or TDCA, that claim is not filed in the collection case; we bring it separately in the Western District's Austin Division.

If a judgment has been entered, our post-judgment debt settlement page explains the options.

One Year to Act, and What a Claim Can Recover

An FDCPA suit must be filed within one year of the violation (15 U.S.C. § 1692k(d)). If you paid an inflated balance or received a misleading letter, note the date now. A successful FDCPA claim may recover actual damages, statutory damages up to $1,000 per action, and attorney's fees and costs (§ 1692k(a)). TDCA claims may recover actual damages, injunctive relief, and attorney's fees and costs (Tex. Fin. Code § 392.403). Outcomes depend on the facts and the evidence.

Working With Texas Debt Law

We reconcile the numbers. We compare the collector's itemization with your original statements and agreement to find charges that don't belong.
We trace ownership. We identify the original creditor, any debt buyer and any law firm, and check bond status.
We handle contact. Once an FDCPA collector knows you are represented, it generally must deal with us.
We pursue the claim. Through negotiation or a separate federal lawsuit, depending on the facts. The review costs nothing, and the FDCPA lets a consumer who wins recover reasonable attorney's fees and costs from the collector (§ 1692k(a)(3)).

Our statewide Texas FDCPA attorneys page covers call limits, harassment and the full legal framework. Nearby residents can also see our Round Rock and San Marcos debt defense pages.

Questions Austin-Area Residents Ask

I live in the Williamson County part of Austin. Is my federal court different?

No. Travis, Williamson and Hays counties are all in the Western District's Austin Division. A collection lawsuit against you, though, would generally be filed in the county where you live.

The collector added a "collection fee" to my balance. Is that legal?

Only if your agreement expressly authorizes it or the law permits it. Ask for the itemization, find your original card agreement if you can, and bring both to your review.

The letter says my balance "may increase" because of interest. Is that a violation?

Probably not by itself; the Fifth Circuit has held that kind of conditional language lawful. A letter that states a wrong amount, or adds interest the agreement doesn't allow, is a different matter.

I was sued over an account I never opened. What should I do?

File an answer before the deadline and deny the debt; don't ignore the suit because it isn't yours. Gather identity theft reports and records. Defending that suit is a separate matter from any FDCPA or TDCA claim against the collector, which we would bring in federal court. Our debt lawsuit Q&A covers identity theft defenses.

Take the First Step

Call or text (214) 945-0000, or request a free case evaluation online. We speak Spanish.

This page offers general information, not legal advice, and does not create an attorney-client relationship. The result of any claim turns on its specific facts.

Sources

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General information, not legal advice for your case.