What does the fair dealing requirement under the TDCA require of collectors?

• A. Collectors may use deception to encourage payment.
• B. Collectors only need to provide a monthly statement.
• C. Collectors can threaten criminal charges without basis.
• D. Collectors must act truthfully and transparently.

Answer: (D)

Fair dealing means debt collectors must be honest and straightforward in every interaction. Under the Texas Debt Collection Act, they are prohibited from deception, misrepresentation, or making threats that aren’t legally justified. They should clearly identify themselves and the agency, explain the debt and amount accurately, and be willing to provide validation if asked. They must avoid misleading statements or pressure tactics and communicate in a transparent, factual way. A monthly statement alone doesn’t meet this requirement, and threats of criminal charges without a real basis are not allowed. So, collectors are required to act truthfully and transparently.