Legal Question in Credit and Debt Law in Texas
Statute of Limitation on Debt
My son had a credit card that he stopped paying on in early 2000, with a balance of approximately $200.00. He has had letters from different collection agencies, with each one stating the balance due as larger than the agency before them (penalties maybe?). The latest collection agency has stated his account balance at over $1,100.00. My question is, isn't there a Statute of Limitation on this account, and could you explain exactly what that means? Also, just how much can they keep adding to a $200.00 debt? Isn't there some sort of limit on this also? By the way, yes, I did try to get him to pay off the debt rather than risk his credit, but he ignored it thinking it would go away, which should be a lesson to everyone who thinks credit card companies forgive and forget.
1 Answer from Attorneys
Re: Statute of Limitation on Debt
The statute of limitations for suit on a debt in Texas is four years. It can be reported on a credit report for seven years from the date of last activity. Interest can keep accruing on the unpaid balance. Collection agencies may be adding on their own fees which is a violation of the Fair Debt Collection Practices Act.