What Is the Statute of Limitations On Credit Card Defaults In Texas?

Each state has a statute of limitations regarding credit card debt. These debts are referred to as time-barred debts and creditors have reduced collection options regarding delinquent credit card accounts beyond the that date. While the statute of limitations does not absolve you of your debts or erase credit card defaults from your credit report, Texas law does protect you from lawsuits and possible wage garnishments from time-barred credit card debt.

Time Frame

According to section 16.004 of the Texas Civil Practice and Remedies Code, the statute of limitations on lawsuits due to credit card default is four years. The four-year period begins when you stop making payments on the credit card and the account is considered in default. The statute of limitations does not erase debt; it merely means that you cannot be sued for credit card debt beyond that point.

Consumer Rights

While the statute protects you from the threat of a lawsuit, creditors may dispute that the debt is beyond the statute of limitations and attempt to take you to court. Do not ignore a court summons as a judgment may be brought against you if you do not show up. Attend your court date and bring proof that the statute of limitations has elapsed.

Considerations

Collection agencies may still contact you in an attempt to collect on a time-barred debt and it is within their rights to do so. If you feel you're being harassed, you may send a "no contact" letter to the collection agency stating that you no longer want them to contact you regarding the debt. Send the letter via certified mail and keep a copy for your records. Under the Fair Debt Collection Practices Act, creditors cannot contact you once they have received a "no contact" letter except to notify you of further legal action.

Warning

Verifying the debt or agreeing to pay creditors and making payments may restart the statute of limitations, according to bankrate.com. In addition, delinquent credit card accounts will appear on your credit report for up to seven years. This negative information lowers your overall credit score resulting in less favorable terms with future lenders and higher interest rates.