1. What is the difference between a third party debt collector and a creditor collecting on its own behalf?
Sometimes consumers confuse third-party collectors (collection agencies) with the in-house collection department of a creditor. Professional debt collection services are third-parties to the transaction that created the debt and are collecting for the creditor. Third party debt collectors are regulated by the federal Fair Debt Collection Practices Act and in Texas, the Texas Debt Collection Practices Act (Chapter 392, Texas Finance Code). (back to questions)