Which agencies oversee debt collection practices in Texas and the United States?

• A. The Financial Conduct Authority handles both federal and state standards
• B. The Texas Securities Commission handles all state debt collection matters
• C. The Consumer Financial Protection Bureau alone governs collection practices
• D. FDCPA enforces federal standards; TDCA enforces Texas standards; both provide enforcement mechanisms including private rights of action

Answer: (D)

Debt collection rules come from two levels: federal and state. The federal standard is set by the Fair Debt Collection Practices Act, which governs how collectors may act toward consumers across the United States. The Texas standard is set by the Texas Debt Collection Act, which applies to collectors operating in Texas and provides protections specific to Texas residents. Both frameworks empower consumers to take action when violations occur, including a private right of action to sue and seek damages (and often attorney’s fees). While other agencies play a role in enforcement, this combination—federal standards under the FDCPA and Texas standards under the TDCA, with private enforcement options—best describes the oversight system.