Understanding Texas SOL

[Anonymous]

The last date of activity for the account in question was October of 2003.  I was never contacted by the OC but last month I received a letter from a CA wanting to settle the debt.  I have not yet responded.  From what I've been reading (If I understand correctly) legally they can not collect this debt after October 2007 (4 years SOL) which explains why the OC just recently sold the account to the CA.  I'm tempted to just ignore them and let the SOL run out at the end of this year.

Nothing has been been reported on my CR's yet from them but even if they do am I correct that it can only stay on my report 7 1/2 years from October 2003?

   Texas Statutes of Limitation

The Texas Civil Practice & Remedies Code provides a 4-year limitations period for types of debt. The SoL begins after the day the cause of action accrues, (Section 16.004 (a) (3)).

STATUTE OF LIMITATIONS ON ENFORCEMENT:

        Open Account (credit card):  4 years

          Written Contract: 4 years

[Anonymous]

Hmmm  I would find out for sure when the SOL starts ticking is it the last date of activity  or First Date of Deliquency.   I pretty sure it is Last date of Activity plus 180 days.   So I would find out exactly what your State's SOL policy's are exactly.    Also if you are going to wait out the SOL on this, I would put some money away, enough to cover the debt just in case.   CA's are becoming more and more notorious for sneaking in Judgments just under the SOL wire.    So sock drawer the amount away,   if you receive a summons, ANSWER IT, even if you feel it's past the SOL, if you don't and don't show up for court they win an automatic default judgment whether it's in the SOL or beyond it.

If you are served a summons and it's still within the SOL  you will have your money just in case.  And hopefully be able to settle with them before it officially goes to court and even then I would still plan on going to court, just in case.   

Also some other factors to be sure of

1.  Did you open up the CC while still living in Texas? if not then SOL is meaningless,  Tolling comes into play from the other state you opened up the credit card, meaning the SOL Freezes until you return to the state it was opened up.

So you have some work ahead of you if you are going to wait out the SOL.   Find out exactly what's Texas policy is to when the clock starts ticking and make sure the debt was opened up in Texas and put some money away just in case.

Good luck.

[Anonymous]

What other state?  I opened the account in Texas and have never left. (Unless you count the one week vacation in New Orleans back in 2005).

It wasn't a credit card.  It was a bank account that got hit with a bunch of overdraft fees.

[Anonymous]

I was throwing in a scenerio to be sure that they debt occured in the same state you reside in now because of Tolling if you move to another state.  And since you haven't they you are fine in that regards.

I thought it was a credit card because it had  ( ) around it under SOL.  

NSF,  I would  double check to make sure there isn't any special State Laws in regards to NSF's  though.

[Anonymous]

Thanks...I still might just pay it but I want to be sure I've weighed my options.

[Tuscani]

Call the CRA and get the DOFD. Remember, the SOL has nothing to do with the reporting period.. the SOL simply defines how much time can has to pass before you are no longer liable if they were to sue.

Full Texas SOL:

TEXAS %

INTEREST RATE*

Legal: 6% with agreement can charge up to 18%. w/o agreement - statutory interest of 6% begins to run 30th day after becoming due

Judgment: 10%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 4

Written Contract: 4

Domestic Judgment: 10 (Renewable)

Foreign Judgment: 10 (Renewable)

BAD CHECK LAWS (CIVIL PENALTY) N/A

GENERAL GARNISHMENT EXEMPTIONS

100% of Wages

COLLECTION AGENCY BOND & LICENSE

Bond: Yes License: No Fee: No

Always consult counsel to charge interest - Texas has very onerous usury laws & penalties.

[tpayne105]

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 4

Written Contract: 4

Domestic Judgment: 10 (Renewable)

Foreign Judgment: 10 (Renewable)

Tuscani...what exactly is the difference between an open account, written account, domestic and foreign judgment???

Thanks!