AI Debt Collection in Texas

Q: Does the TDCPA apply to B2B debt collection?

The Texas Debt Collection Act (TDCPA) primarily targets consumer debts, but its prohibition on deceptive, threatening, or coercive conduct applies broadly. Best practice is to follow TDCPA guidelines for all collections to avoid litigation risk.

Q: Is Texas a one-party or two-party consent state for call recording?

Texas is a one-party consent state (Tex. Penal Code §16.02). Only one party to the conversation needs to consent to recording. AgentCollect still discloses recording as a best practice.

Overview

Texas B2B Debt Collection Landscape

Texas is the second-largest commercial market in the US, with over 3.1 million registered businesses generating billions in B2B transactions annually. The state's business-friendly regulatory environment makes it relatively straightforward to collect commercial debts, but collectors must still comply with the Texas Debt Collection Act (TDCPA) and maintain proper registration.

Key distinction: Unlike consumer collections, B2B debt collection in Texas is less regulated. The FDCPA does not apply to commercial debts. However, the TDCPA's anti-harassment and anti-deception provisions apply broadly to all debt collection activity, including commercial accounts.

Key Law

Texas Debt Collection Act (TDCPA)

Tex. Fin. Code §392 — The TDCPA

The Texas Debt Collection Act is the primary state law governing collection practices. While it was designed primarily for consumer debt, its core prohibitions apply to anyone engaged in debt collection activity, including commercial collections.

No threats of violence or criminal prosecution
No harassment, oppression, or abuse in collection communications
No false, deceptive, or misleading representations
No unfair or unconscionable means to collect
No contact with third parties except to locate the debtor (with restrictions)
Violations carry penalties of up to $100 per violation plus actual damages and attorney fees

How AgentCollect Ensures TDCPA Compliance

AI agents are pre-programmed to never use threatening, abusive, or deceptive language
All communication scripts are reviewed for TDCPA compliance before deployment
Call recordings are automatically QA-reviewed for compliance violations
Cease-and-desist requests are honored immediately and logged
Third-party contacts are limited to location-only inquiries per TDCPA §392.302

Statute of Limitations

How Long You Have to Collect

Texas Civil Practice & Remedies Code

Texas has a relatively standard statute of limitations for commercial debts. Once expired, the debt is not forgiven, but it becomes unenforceable through the courts.

Contract Type	Time Limit	Code Section
Written contract	4 years	§16.004
Oral contract	4 years	§16.004
Open account (invoices)	4 years	§16.004
Promissory note	6 years	§16.004
Sale of goods (UCC)	4 years	UCC §2.725

Important: In Texas, a written acknowledgment of the debt or a partial payment can restart the statute of limitations. This differs from some other states where only a payment (not an acknowledgment) restarts the clock.

Licensing

Texas Registration Requirements

Third-Party Collector Registration

Texas requires third-party debt collectors to register with the Texas Secretary of State. The requirements are less burdensome than many other states.

Registration with the Texas Secretary of State is required for third-party collectors
Surety bond of $10,000 must be posted and maintained
Original creditors collecting their own debts are exempt from registration
Attorneys licensed in Texas are exempt when collecting through litigation
No separate state license is required (unlike California's DFPI license)

AgentCollect in Texas

AgentCollect maintains active registration with the Texas Secretary of State
Surety bond is posted and kept current
Partner attorneys are licensed and barred in Texas
All communications automatically include required collector identification

Built-In Compliance

Automatic Texas Compliance

Every AgentCollect account handling Texas debtors is pre-configured for the state's specific requirements. No manual setup needed.

Requirement	How AgentCollect Handles It
TDCPA anti-harassment	AI agents are trained to be respectful and professional. Zero threatening or abusive language.
Collector identification	Every call and email includes the collector's identity and purpose as required by TDCPA §392.301.
Statute of limitations	Accounts past 4-year SOL are flagged. Collection approach is adjusted automatically.
Call recording (one-party)	Texas allows one-party consent. AgentCollect still discloses recording as best practice.
Contact hours	AI agents auto-detect timezone from area code. Calls placed during reasonable hours only.
Cease-and-desist	Immediately stops all contact. Account moved to legal review queue.

FAQ

Texas B2B Debt Collection FAQ

Do I need a license to collect commercial debts in Texas?

Third-party debt collectors must register with the Texas Secretary of State and post a $10,000 surety bond. Original creditors collecting their own debts are exempt. AgentCollect holds all required registrations, so you do not need to obtain one yourself.

What is the statute of limitations for B2B debts in Texas?

Texas has a 4-year statute of limitations for most written contracts (Tex. Civ. Prac. & Rem. Code §16.004). For oral contracts, it is also 4 years. Promissory notes have a 6-year limitation. The clock starts from the date the debt became due or the last payment.

Does the TDCPA apply to B2B debt collection?

The Texas Debt Collection Act primarily targets consumer debts, but its prohibition on deceptive, threatening, or coercive conduct applies broadly. Best practice is to follow TDCPA guidelines for all collections. AgentCollect does this automatically.

Can I charge interest on unpaid B2B invoices in Texas?

Yes. Texas allows contractual interest rates between businesses. If no rate is specified in the contract, the legal rate is 6% per year (Tex. Fin. Code §302.002). For commercial transactions, parties can agree to higher rates. Include interest terms in your contracts for clarity.

Is Texas a one-party or two-party consent state?

Texas is a one-party consent state under Tex. Penal Code §16.02. Only one party to the conversation needs to consent to recording. AgentCollect still provides recording disclosure at the start of each call as a professional best practice.