That's a good question. I'm not sure what is the answer to that question. I'll do some research in Google and get back to you if I discover an good answer. You should email the people at Lending Tree as they probably can answer it..

Oh yeah, they also don't have to be bonded unless they have an office in TX..

Homer..

Homer, there is nothing about having an office in TX in the Finance Code!.

SUBCHAPTER B. SURETY BOND.

392.101. BOND REQUIREMENT. (a) A third-party debt collector or credit bureau may not engage in debt collection unless the third-party debt collector or credit bureau has obtained a surety bond issued by a surety company authorized to do business in this state as prescribed by this section. A copy of the bond must be filed with the secretary of state...

Why would you think the debts would be sold?..

Even if the debt is sold, the purchaser is still a debt collector as long the debt was purchased in default status. I do not know any specifics regarding the surety bond is required only for collection agencies that operate out of Texas, but I have heard this comment made before. Also, the Texas Finance Code does not distinguish between original creditors, and collection agencies. They are both considered debt collectors and are required to follow the rules set forth in the finance code..

CHAPTER 392. DEBT COLLECTION.

SUBCHAPTER A. GENERAL PROVISIONS.

392.001. Definitions.

(5) "Debt collection" means an action, conduct, or practice in collecting, or in soliciting for collection, consumer debts that are due or alleged to be due a creditor..

(6) "Debt collector" means a person who directly or indirectly engages in debt collection and includes a person who sells or offers to sell forms represented to be a collection system, device, or scheme intended to be used to collect consumer debts...

Hi James,.

Which comment had you heard before? debt is sold...or officed in TX?.

I have read somewhere that even if the debt is sold they are still a collector...I just can't recall where. That is interesting though about TX not distinguishing between the two, I'm going to go read up, maybe it will give me some leverage with some OC's...

Sorry, I have heard the comment that they are required to be bonded only if they have an office in Texas. If the debt is sold as "Bad Debt" the buyer is considered a debt collector, not a creditor. I know many buyers of bad debt do not consider themselves as debt collectors, but they are according to the FDCPA:.

TITLE VIII - DEBT COLLECTION PRACTICES [Fair Debt Collection Practices Act].

803. Definitions [15 USC 1692a].

As used in this title.

(4) The term "creditor" means any person who offers or extends credit creating a debt or to whom a debt is owed, but such term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another...

Yep, thats what I was looking for..

I can't see anything in the TX Finance Code that indicates they have to office in TX. That thought smells of a CA trick. They are engaging in debt collection, if they send a letter to a consumer in TX...I know I have checked on a few, trying to bust them, most are from out of state, and they are all bonded here...

How are you checking if they are bonded or not? Do you know of another way other than contacting the Secretary of State directly?..

No I haven't. I just call or email them. Its free. If you do it yourself on the internet they charge. Go figure.....

I email them also(too cheap to call long distance). Actually, you can't check it online. You can check tax information, but not bonds. I asked the lady whom I email when I need find out about a bond if there was an online database similar to the SOSDirect database, and she said, "this information is not online yet". Hopefully the yet insinuates that it will be in the future. It will make things a lot easier...

Well I contacted the Attorney General's office in TX and they made it clear that any collection agency, anywhere in the country has to have a bond on file with the State of Texas if they attempt to collect a debt within the state. Doesn't matter if they have an office here or not. I have also requested this in writing, because I am ready to go! (To court that is)..

Go get 'em! We really didn't mean to hijack your thread!..

How did you get them to respond with specifics? I contacted them regarding an unregisterd Foreign LLC acting as a debt collector in Texas, and this is the response I got:.

Dear Mr. James5150:.

Thank you for your recent message. Please understand that the Office of the Attorney General is prohibited by law from providing legal advice to private individuals..

You can access statutes relating to this issue on the Texas Legislature Online Web site at.

Www.capitol.state.tx.us..

For additional information about Texas statutes, you may wish to contact the Texas State Law Library. The Library, which houses all state codes and statutes, offers services that include database searching, photocopying and faxing for individuals requesting information. The Texas State Law Library can be reached at:.

I am not doubting you, just wondering how you got them to be so specific...

You have to be creative in the way you ask them questions. I will post a link to the letter as soon as I get it faxed to me...

Please do that! It may come in handy for alot of people...

And I thought this thread was gonna die. Thanks for the sections of code y'all..

I posted that the CA wasn't required to be bonded because Why Chat told me this on cardreport 1-17-03. Looking there again, he sticks to this. DJReverb and some one else asked after I did and got the same answer. He maintains that state laws can only apply to businesses run in that state. That makes sense. I'm not saying he's wrong but if I were to get sued in TX, I'd certainly motion to have the cased dismissed on these grounds.

Wouldn't a reasonable judge interpret this the same way?.

Maybe they get around this by using bonded attourneys..

Almost forgot to ask. Does the TX finance code specify damages per violation?.

Homer aka Flying J.

(probably needs to start drinking coffee)..

I just received an email from the office of the Secretary of State about this..

My question:.

"Are all Third Party Debt Collectors required too post the surety bond, or only the agencies that do business out of Texas?".

Their response:.

“Texas Finance Code Ch. 392 requires anyone not exempt to file a bond if they are doing third party collection of consumer debt in Texas. Here is a link to the statute..

Http://www.capitol.state.tx.us/statu...039200toc.html.

".

I am currently researching the exemptions. But it appears that anyone collecting MUST have a registered bond. I will let ya'll know what I find out about the exemptions...