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New Debt Collection Laws - FCRA Law 2023

Updated: Nov 7, 2023

What are the new debt collection laws in 2023? The Laws of debt collection in USA have not changed much in 2023, but they can alter at any time and differ between states and countries. Businesses involved in debt collecting must keep current with any modifications to their country's applicable laws and regulations. The regulations governing debt collection techniques were updated in 2020, and the Consumer Financial Protection Bureau (CFPB) is now reviewing revisions.

Are there any New Debt Collection Laws in 2023?

It is unknown when or if these revisions will be finalized and go into effect, but they might significantly impact companies that collect debts. This blog will provide awareness of debt collection practices and FCRA Law 2023.

Need one-to-one guidance on the debt collection laws in 2023 or commercial debt collection service in USA? Contact us here.

When you owe money

Although creditors might not want to use a debt collection agency, if it looks like you won't pay, they might sell your loan to one for less than its total value. The company will then make an effort to collect the entire debt. If you have a debt, contact your creditor immediately, explain the issue, and set up a payment schedule. Creditors frequently aid in your catch-up.

All credit reporting companies must:

Only gather and report correct credit information by the new FCRA Law 2023.

  • Keep accurate records

If a report is false, give people a free copy of their credit report upon request.

The Credit App debt collection process allows contractors, small business owners, and sole proprietors to report defaults and nonpayment from their customers directly to the credit bureaus.

  • Prohibition on debt collectors

The Texas Debt Collection Act regulates debt collectors. It prohibits using abusive tactics such as threatening violence, profane language, false accusations of fraud, threatening arrest, or property seizure without proper court proceedings.

The tactics also include anonymous phone harassment, and collecting calls without disclosing the caller's true name before charges are accepted.

Fraudulent collection tactics involve using a false name, misrepresenting debt amounts, sending false documents, failing to identify debt holders, misrepresenting services, falsely claiming collectors have valuable information, and trying to collect more than agreed-upon amounts. It's important to remember that debt can grow with additional fees, such as collection and attorney fees, according to debt collection laws in 2023.

A homestead residence cannot be used to satisfy obligations in Texas except for property purchases, upgrades, home equity loans, and some taxes. Only past taxes, unpaid student loans, and court-ordered child support are eligible for wage garnishment.

Debt collectors cannot garnish wages to pay off consumer debt. If a debt collector threatens to seize your property or garnish your earnings, file a complaint with the Texas Department of Consumer Affairs immediately.

The Texas Debt Collection Act has both criminal and civil sanctions for violators. You can file a lawsuit for damages and injunctions against debt collectors in case of harassment or cheating. The Attorney General is given the power to act in the public interest, which is also violated by this conduct according to The Texas Deceptive Trade Practices/Consumer Protection Act.

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In case of a Debt Dispute

The debt collector must be notified in writing if you contest the veracity of anything in their file. Calling the collector will not stop collection efforts. Send your dispute letter or certified mail with "return receipt requested" to verify the collector received it. The collector then has 30 days to decide whether the contested item is accurate.

The debt collector may proceed with collection efforts if the disputed item is accurate.

If the disputed item is inaccurate, it must be changed. Anyone already receiving a report must be notified that it contains inaccurate information. The debt collector must make the correction you requested and tell anyone who received a report containing the inaccurate item if, after 30 days, they are still determining whether the item is accurate or not.

The Fair Debt Collection Practices Act

The Fair Debt Collection Techniques Act (FDCPA) governs the activities of debt collection in USA. It forbids unfair, abusive, or misleading techniques. Although it does not apply to them, it is nonetheless advisable for financial institutions like community banks and credit unions to abide by these rules.

The FDCPA limits the number of calls a debt collector can make to a debtor, forbidding calls made more than seven times in a row. Debt collectors may contact them more frequently if a debtor owes more than one loan.

The FDCPA requires debt collectors to give consumers simple ways to opt out of receiving electronic communications. Additionally, it forbids debtors from being contacted by debt collectors via work emails.

However, consumers may contact them if they need to opt-out or give permission. While the FDCPA only applies to debt collectors, financial and legal safeguards will be offered by The Service Members' Civil Relief Act (SCRA) to active-duty members of the U.S. Marines, Navy, Coast Guard, Air Force, and Army.


It would help if you spoke with an expert lawyer or commercial debt collection specialist in your jurisdiction for particular inquiries regarding debt collection laws or regulations. Commercial debt collection service is licensed. These services can help you with the collection laws in your state and recover past-due account receivables for your company.


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