Texas Attorney General Goes After Debt Collection Agency

Texas Attorney General Greg Abbott announced Wednesday that his office had charged a Dallas-based debt collection agency with using deceptive practices to collect from Texas consumers.

The AG’s office said that it filed a suit asking the courts to “permanently enjoin Anderson, Crenshaw & Associates, LLC from harassing Texas debtors with deceptive letters and unlawful telephone calls.”

Abbott’s office said that primary reason for the suit was the wording of a collection letter Anderson was sending to debtors. The AG alleges that Anderson’s initial communications letter demanded payment of the debt within 30 days and threatens legal action after that. Although the letter informs the debtor of their right to dispute the debt, Abbott’s office said that the wording constitutes a debt collection action during the validation period, a violation of the Fair Debt Collection Practice Act.

The state’s enforcement action also accuses the company of threatening to garnish consumers’ wages or file liens against homesteads in violation of the Texas Debt Collection Act. According to several complaints, the defendant’s representatives also harassed, abused and threatened debtors during profanity-laden, repeated or continuous telephone calls.
 
The attorney general’s enforcement action seeks civil penalties of up to $20,000 for each violation of the Texas Deceptive Trade Practices Act and penalties of up to $250,000 each if the consumer was over 65 years of age.