Debt Collection Letter After 10 years


(Texas)

I received a debt collection letter from CRSI re: Credit Card Co. in the amount of 15k+ suggesting that I consult with my attorney about the laws in my state allowing to recover the monies owed and further consequences of non payment. The account does not show on either of the (3) credit reporting agencies and the last activity was 2001 maybe! I have reviewed the TX laws and the SOL, but am still afraid that they will take my income tax return. I have remarried and my husband has nothing to do with the old debt. What steps do I take from here? Thanks in advance for your response.

Comments for Debt Collection Letter After 10 years

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Jan 14, 2011
 Statute of Limitations Has Expired on Credit Card Debt
by: Mary

Thanks for sharing your collection story with us.

You are correct that the statute of limitations (SOL) on the debt you have been contacted about has expired. In Texas, the SOL on a credit card debt is 4 years. Given that the statute of limitations has run out, the debt collector cannot sue you for the money you owe; all it can do is ask you to pay the debt.

Most likely, the debt collector who contacted you bought your old debt is hoping that you will admit that you owe the money or offer to pay the debt. This is because if you do, you will start the SOL running all over again and the collector will be entitled to sue you for the money, which will increase its odds that it can collect at least some of what you owe.

I recommend that you take advantage of your right under the federal Fair Credit Reporting Act and write the collector a letter asking that it not contact you about the debt again. Make a copy of your letter for your files and send the letter certified mail with a return receipt requested. Once the collector receives your letter it is obligated to cease contact with you although it is entitled to get in touch to let you know that it won't be communicating with you again. If the debt collector continues its communications, consult with a consumer law attorney in your area because you may have grounds for a law suit.

As for whether the collector can take your tax refund, the only way that could happen is if it sued you, got a judgment against you, tried to collect on that judgment by taking money from your bank account and your tax refund was in that account. However, given that the SOL on your debt has expired and the collector cannot sue you, this is not a problem you need to worry about.

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