What is the statute of limitations on debt?

A “statute of limitations” refers to how long a party has to bring suit in court. Chapter 16 of the Texas Civil Practice and Remedies Code sets out limitation periods for various civil causes of actions, and section 16.004 of the Code sets out a 4-year limitation period for suits related to debt. According to the statute, a lawsuit must be brought “not later than four years after the day the cause of action accrues.” The Texas Attorney General provides several articles relating to debt collection and relief that may answer some of your questions.

In addition to Texas law, the Fair Debt Collection Practices Act is federal law enforced by the Federal Trade Commission (FTC). The FTC website provides answers to frequently asked questions about debt collection. The FTC website addresses some aspects of collecting on an old debt with the following information:

What if my debt is old?

Debt collectors have a certain number of years they can sue you and win to collect a debt. It’s called the statute of limitations, and usually begins when you fail to make a payment on a debt. Once it’s over, your unpaid debt is considered “time-barred,” but in some states, you have to raise the age of the debt as a defense to win.

How long the statute of limitations on a debt lasts depends on what kind of debt it is, and the law in your state or the state specified in your credit contract.

Also, under the laws of some states, if you make a payment or provide written acknowledgment of your debt, the clock may start ticking again.

Can a debt collector contact me about a time-barred debt?

Yes. Even if a debt collector can’t successfully sue you over a time-barred debt, you may still owe it.

What if I’m not sure whether my debt is time-barred?

Ask the collector when its records show you made your last payment. You also can send the collector a letter within 30 days of receiving a written notice of the debt. Explain why you’re disputing the debt and that you want to verify it. A collector must stop trying to collect until it gives you verification.

If you are unsure of when the 4-year limitations period begins and ends, it would be best to consult with an attorney who could help calculate when your cause of action accrued. Keep in mind that, as the FTC website indicates, certain actions may “reset the clock” or re-age the 4-year period — e.g., making a partial payment, agreeing to a payment plan, affirming the debt. For more information about debt collection, the library has put together a research guide with links to more information about debt collection laws.

Debt collectors keep calling me. What can I do?

The federal Fair Debt Collection Practices Act regulates communications in connection with debt collection. In particular, section 805(c) of the Act states the following about ceasing contact:

If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except (1) to advise the consumer that the debt collector's further efforts are being terminated; (2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or (3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy. If such notice from the consumer is made by mail, notification shall be complete upon receipt.

There are many sample "cease contact" letters for use with third-party debt collectors. For example, the Consumer Financial Protection Bureau (CFPB) provides sample letters you can download. Also see this publication from the National Consumer Law Center that contains a sample letter [PDF]. Also see our research guide on debt collection.

Can debt collectors call my work? Can they call my family or boss?

Section 1692c of Title 15 of the U.S. Code relates to communications from debt collectors. In particular, subsection (b) deals with communications with third parties. It states:

Except as provided in section 1692b of this title, without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than the consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector.

Click here to review the exceptions allowed by section 1692b. The Consumer Financial Protection Bureau (CFPB) provides information about federal laws that limit what debt collectors can do or say. Also see our research guide on debt collection.

How late can telemarketers call?

Chapter 301 of the Texas Business & Commerce Code regulates telephone solicitation practices. In particular, section 301.051 restricts certain telephone solicitations to the period between 9 a.m. and 9 p.m. (or noon to 9 p.m. on Sunday). Also review chapter 302 of the Texas Business & Commerce Code as it regulates other aspects of telephone solicitations.

For how long can negative information appear on my credit report?

Section 20.05 of the Texas Business & Commerce Code lists the information that a credit reporting agency may not furnish on a consumer report. Certain negative information may not be reported after 7 years. Certain bankruptcy information may not be reported after 10 years. For federal laws regarding credit reporting agencies and the information they may or may not furnish on a credit report, see Title 15, Chapter 41, Subchapter III of the U.S. Code.

For more information, see our research guide on credit reports.