J. Thomas Black - Is Your Debt Management Service Operating Legally?

I often have prospective clients come into my office to see me, that have hired a Debt Management Service to help them manage, pay and/or "settle" their debts, particularly credit card debts. Needless to say, the people that come in to see me about bankruptcy or non-bankruptcy alternatives that I offer, have not had satisfactory experiences with their debt management services. Some of them have paid them many thousands of dollars, and finally realize that they may have to file bankruptcy anyway.

In fact, it's common for these services to not even be operating legally in Texas. In Texas, debt management or debt "pooling" services are regulated by the Texas Debtor Assistance Law, which is Chapter 394 of the Texas Finance Code. The Texas Finance Code is at http://tlo2.tlc.state.tx.us/statutes/fi.toc.htm.

These services must be registered with the Texas Consumer Credit Commissioner in order to be operating legally. A list of those services that are registered is on the web site of the Texas Consumer Credit Commissioner at http://www.occc.state.tx.us/pages/searches.html. Click on "List of Debt Management Services Providers" to see if your service is listed.

If you are a Texas resident, and your debt management service is not listed on that page, or if they have violated other provisions of the act, you may have a right to recover from them: (1) all the money you've paid them; (2) any actual damages you've suffered as well as punitive damages; (3) attorney fees for enforcing your rights; and (4) injunctive relief (a court order stopping them from continuing to operate illegally).

If you believe that your debt management service has violated this law, you are welcome to come in and visit with me about it, and your rights to recover money from them. There is no charge for your first visit. Please bring any and all documents that you received from the debt management service, and a list of the amounts and dates of your payments to them. Thank you, J. Thomas Black