AInora

Texas Debt Collection Compliance

Texas Finance Code 392 has teeth federal law doesn't.

AI voice agents that automate the routine 80 percent of Texas collection calls while reducing compliance risk under Chapter 392, the DTPA, surety-bond and registration rules, and federal FDCPA / TCPA / Reg F.

Book a compliance review
Answers in <1s|Bilingual EN / ES|Full call recording and audit trail
Try in browser · No signup
JessicaJessica·English

Click to start a conversation

Call our AI assistant

+1 (218) 636-0234

24/7 live AI - call anytime

Click the mic. Talk to Ainora for 60s.

The compliance stack

$10K

minimum surety bond required with the Texas Secretary of State before any third-party collector may operate in Texas.

3x

maximum DTPA damages (three times actual damages) plus attorney fees available to consumers on misrepresentation claims.

392

Texas Finance Code chapter that governs debt collection conduct. The OAG Consumer Protection division brings actions under it every year.

Sources: Texas Finance Code § 392, Texas DTPA (Bus. & Com. Code § 17.41 et seq.), Texas OAG

What the law says

Six rules that shape every Texas collection call.

Texas Finance Code Chapter 392

Texas's state-level FDCPA twin. Prohibits threats, coercion, harassment, and misrepresentation by any third-party debt collector operating in Texas, with state-court enforcement available to consumers.

Texas surety-bond requirement

Third-party debt collectors must file a $10,000 surety bond with the Texas Secretary of State before doing business in Texas (Finance Code § 392.101). This trips up out-of-state collectors who miss the filing.

Registration with Texas Secretary of State

Alongside the bond, third-party collectors register with the Texas Secretary of State. Registration lapses are a standing ground for consumer suits and state enforcement actions.

Prohibition on coercive or threatening language

Finance Code § 392.301-304 bans threats of violence, threats of arrest, and threats of legal action you do not intend or cannot take. Scripted AI language makes this easier to audit than human agents.

Texas DTPA overlay

The Texas Deceptive Trade Practices Act lets consumers sue for misleading statements about debt amounts, legal status, or collector identity. DTPA damages can reach three times actual damages plus attorney fees.

TCPA overlap with TX Business & Commerce Code

Federal TCPA governs autodialed / prerecorded calls to wireless numbers. Texas Business & Commerce Code §§ 302 / 305 adds state-level telemarketing and caller-ID rules that can catch collection calls misconfigured as solicitation.

Live demo

Hear our AI in action

Emily handles a live collection call for Crown Recovery. Same voice tech, configured for Texas compliance.

EN
Emily
Crown Recovery Services
+1 (332) 241-0221
Book a demo call

Federal vs Texas

Two layers, stacked.

Federal FDCPA, TCPA, and Reg F set the floor. Texas layers Finance Code 392, the DTPA, and bond / registration rules on top.

Federal baseline

  • FDCPA: applies to third-party debt collectors. Validation, harassment, false-statement rules.
  • TCPA: prior express consent for autodialed or prerecorded calls to wireless numbers.
  • Reg F (CFPB): 7 contact attempts per 7 days per debt; 7-day cooldown after a consumer conversation.
  • Calling hours: 8 a.m. to 9 p.m. consumer local time.

Texas add-ons

  • Finance Code 392: harassment, coercion, misrepresentation prohibited with state-court remedies.
  • Surety bond: $10,000 bond required for third-party collectors before any Texas activity.
  • Secretary of State registration: must be current; lapses are actionable.
  • DTPA: treble damages and attorney fees available on misrepresentation claims.

Built-in vs configurable

What AI handles automatically. What we tune per client.

AI reduces risk on the repeatable rules. Your specialized policies, disclosures, and workflow live in the configurable layer and are signed off by your counsel.

Built-in

Platform-level

Configurable

Per client, with your counsel

Time-of-day restrictions based on consumer local time zone
Your Finance Code 392 disclosure and validation-notice wording
Reg F 7-in-7 contact-frequency caps per debt
Dispute-handling script, investigation window, response cadence
Full call recording, transcripts, and tamper-evident audit log
Bond and registration metadata tagging for every outbound call
DNC / cease-and-desist / litigious-consumer suppression lists
Payment-plan terms, settlement authority, and escalation thresholds
Voicemail scripts with Foti-compliant minimal disclosure
AI-identification policy (proactive, on request, or none) per your counsel
Scripted language that avoids DTPA-trigger phrasing
Approved legal-action language tied to a documented legal track

AI reduces compliance risk by automating the repeatable rules. Specialized legal review by Texas counsel is still required for your specific workflow.

How AI stays compliant

The pre-call, in-call, post-call flow.

Every call runs through the same sequence. If any check fails, the call does not happen or the AI hands off.

Verify consent, bond, and SOS registration status
Check consumer local time zone
Check DNC, cease-and-desist, litigious lists
Check Reg F 7-in-7 contact-frequency cap
Place call with scripted Chapter 392 disclosure
Record full call, stream transcript to audit log
Flag any DTPA misrepresentation risk for human review
Archive with retention policy and bond / registration metadata

Integrations

Connects to the collection stack you already run.

AI writes call outcomes, promises-to-pay, and dispute flags straight into your core system. No double entry, no CSV imports.

Salesforce·
HubSpot·
Experian·
Equifax·
TransUnion·
LexisNexis·
Stripe·
QuickBooks·
Telnyx·
RingCentral·
Twilio·
Zapier·
Make·
n8n·
Custom API·
Salesforce·
HubSpot·
Experian·
Equifax·
TransUnion·
LexisNexis·
Stripe·
QuickBooks·
Telnyx·
RingCentral·
Twilio·
Zapier·
Make·
n8n·
Custom API·

Plus 7,000+ apps via Zapier, Make, and n8n. If your collection system has an API, we connect it.

FAQ

Texas compliance, answered.

If you are a third-party debt collector doing business in Texas, yes. Finance Code § 392.101 requires a $10,000 surety bond filed with the Texas Secretary of State, plus registration. First-party creditors are not covered by the bond requirement but may still be reached by DTPA and TCPA. Confirm your classification with Texas counsel.
Section 392.304 is the state's core prohibition on fraudulent, deceptive, or misleading representations: misstating debt character or amount, misrepresenting legal status, falsely implying attorney involvement, and similar. Scripted AI language combined with call-recording gives you a clean audit trail if a consumer disputes what was said.
Yes. Federal FDCPA and Reg F set the 8 a.m. to 9 p.m. consumer-local-time window, and Texas consumers are protected by that baseline. Chapter 392 reinforces harassment rules for calls at inconvenient times. Our AI detects consumer time zone and blocks out-of-window outbound calls by default.
Only if legal action is actually available and intended by your client. Finance Code § 392.301 and § 392.304, and DTPA, make false threats of suit a per-se violation. The AI is scripted not to reference legal action without an approved script tied to a documented legal track; escalation to a human handler is mandatory.
The AI reads from approved scripts for debt amount, account status, and identity of creditor and collector. It does not improvise legal or financial conclusions. Every call is recorded and transcribed, so if a DTPA claim is filed you have objective evidence of exactly what the consumer heard.
Registration is a function of who the collector is, not how the call is placed. If your entity is required to register and bond, that requirement applies whether your outreach is human, AI, or a mix. AI does not change your registration obligations.
Texas does not currently mandate a generic "you are speaking to an AI" disclosure for debt calls, though the law is evolving. Our default configuration discloses AI on request and on voicemail; proactive disclosure can be enabled per your compliance counsel's preference.

Ready to de-risk your Texas collection calls?

Let AI handle the repeatable 80 percent with the guardrails already in place. Your team and your counsel stay in control of the 20 percent that matters.

Book a compliance review

This page is general information, not legal advice. Consult a licensed attorney in Texas before deploying any debt collection AI.