Fighting Back Against Bad-Faith Mortgage Practices Under the Texas Debt Collection Act

Homeownership is the cornerstone of the American Dream, but improper practices by mortgage officers can turn that dream into a nightmare. In Texas, the Texas Debt Collection Act (“TDCA”) protects homeowners from bad-faith or abusive debt collection practices, particularly by mortgage servicers and officers.

Under the TDCA, found in Texas Finance Code § 392, prohibits debt collectors, including mortgage officers, from engaging in misleading, coercive, or unfair practices. This includes tactics such as:

• Misrepresenting the amount owed or the legal status of the debt.
• Threatening foreclosure without proper authority or while the loan is under review for a modification or settlement.
• Failing to properly credit payments to a homeowner’s account, leading to false claims of delinquency.
• Using harassing or abusive communication, such as excessive phone calls or aggressive language.

Improper actions by mortgage officers can cause significant harm, including unnecessary fees, wrongful foreclosure, and emotional distress. In many cases, these violations also breach the Texas Deceptive Trade Practices Act (“DTPA”), allowing homeowners to pursue additional damages, including mental anguish and even treble damages for willful violations.

If you’ve been the victim of bad-faith practices, you have rights. The TDCA allows you to seek compensation for the harm caused, as well as injunctive relief to stop unlawful actions.

At our firm, we understand the devastating impact of improper mortgage practices. We’re committed to holding unscrupulous lenders and servicers accountable. Contact us today to learn how we can help protect your home, your rights, and your peace of mind. Let’s make sure mortgage officers play by the rules—and that justice is on your side. For a free consultation, please contact an attorney at Abraham, Watkins, Nichols, Agosto, Aziz & Stogner by calling 713-222-7211 or 1-800-870-9584.