How does the Texas Debt Collection Act define 'debt collector'?

• A. A bank that writes off a loan.
• B. A lawyer who represents a debtor.
• C. A person or entity that collects a debt owed or due another; includes third-party collectors acting on behalf of creditors.
• D. A consumer who owes a debt.

Answer: (C)

The key idea is who the statute treats as someone who collects debts for others. Under the Texas Debt Collection Act, a debt collector is a person or entity that collects a debt owed to someone else, and this includes third-party collectors acting on behalf of creditors. That means both the original creditor who is trying to collect and outside agencies hired to collect on behalf of creditors fit the definition.

This is the best answer because it captures both direct and third-party collection activities for debts owed to another party. It focuses on the act of collecting and the relationship to the creditor, not on the type of entity or whether the person is a creditor by title.

The other options don’t fit as well. A bank that merely writes off a loan isn’t automatically a debt collector unless it is actively collecting the debt. A lawyer who represents a debtor is assisting the debtor, not collecting debts for creditors. A consumer who owes a debt is the debtor, not a collector.