A credit card company may sell your debt to a collection agency. If done properly, and within a specific time limit, they have “standing” (the legal ability) to sue you for the debt. Under Texas law, as a defendant, you are entitled to know that the collection agency suing you has standing to sue you over the debt. If the collector is different from the original credit card company, you are entitled to see the chain of ownership that establishes whether the debt collector owns the right to sue on the debt. Further, the collection agency may not have followed the appropriate procedures to obtain the debt in the first place. If they fail to follow these procedures then they may not be able to sue you and you may have a valid defense to the claim. Furhter, you need to be sure that you are obligated on the debt. Just because they say you owe the debt doesn’t mean that they necessarily have the legal right to collect the debt.
