Highlights
- Texas cities occupy 8 of the top 10 spots nationally for collection account problems, with Garland, Fort Worth, and Arlington leading
- Garland residents with collection accounts average 3.6 accounts each, the highest rate in the country
- Collection account balances in Texas cities are rising rapidly, with some areas seeing increases over 4% in just three months
- According to WalletHub, collection accounts can damage credit scores for up to seven years and signal broader economic challenges
- Federal and state consumer protection laws provide specific rights and remedies for Texans dealing with debt collectors
Texas Cities Lead Nation in Collection Account Problems, New Financial Study Shows
Garland residents average 3.6 collection accounts each—highest in country—as eight Texas metropolitan areas rank in top 10 cities with highest rates of debt collection accounts
GARLAND, Texas (KPEL News) — A new financial analysis shows that Texas residents face the country’s most serious debt collection challenges, with eight Lone Star State cities claiming spots among the top 10 locations with the highest rates of collection accounts.
According to WalletHub’s latest report analyzing 100 major U.S. cities, Garland leads the nation in collection account problems, followed by Fort Worth in second place and Arlington in third. The personal finance company’s analysis examines collection account data as a key indicator of financial distress within communities.
Texas Dominates National Collection Account Rankings
The complete roster of Texas cities in the top 10 shows the statewide scope of this financial challenge:
- Garland – #1 nationally (Total Score: 71.46)
- Fort Worth – #2 nationally (Total Score: 71.18)
- Arlington – #3 nationally (Total Score: 70.85)
- Lubbock – #4 nationally (Total Score: 70.14)
- Austin – #6 nationally (Total Score: 68.10)
- Plano – #8 nationally (Total Score: 67.38)
- Houston – #9 nationally (Total Score: 64.70)
- Dallas – #10 nationally (Total Score: 63.47)
Other Texas cities ranking high in collection problems include Laredo (#11), Corpus Christi (#16), San Antonio (#17), El Paso (#20), and Irving (#22). Only Henderson, Nevada (#5) and Reno, Nevada (#7) broke Texas’s dominance in the top 10 rankings.
Detailed Analysis of Top Texas Cities
Garland’s Collection Crisis: Residents with collection accounts in Garland average 3.6 accounts each as of Q2 2025—the highest rate in the country. This average went up by about 3.4% between Q1 and Q2 2025, representing the 13th-highest percentage increase nationally. Despite having more collection accounts, Garland residents owe an average of $1,248 per account, which ranks as the 16th-lowest balance among analyzed cities. However, these balances jumped by over 4% in just three months…