What is the Statute of Limitation on Collecting Debts?
Part 13-1: As part of series of articles (blogs) regarding Credit and Credit Score, here we go:
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Statute of Limitation on Collecting Debts
Collection agencies have a time limit to sue the consumer. This time limit is different for different types of accounts and could vary from state to state. Remember, as long as the collection agencies sue the consumer before the time runs out and they win, they could collect the money whether or not the time has passed the limit.
For example, in the state of Texas we have the following statute of limitation for unpaid medical and credit card type of accounts:
·Medical Bills: 2 years from the date of the last activity
·Credit Card Bills: 4 Years from the date of the last activity
Remember, these are the times than debt collectors can demand that you to pay and go after you (Suit you for the money). If the time passes the above window without filing the suit, after these days, they cannot suit and demand the money. However, your unpaid debt will still show up in your credit files for up to 7 years of the last activity.
HOW to overcome the problems with your credit history and credit score?
Knowledge, education, awareness, practice and discipline are the essential keys to being successful on any subject. The book, "Credit Score Tips and Tricks", provides you information, tools, techniques to educate yourself and manage your credit report & credit score, and therefore manage your finances effectively at no additional cost.
I have decided to bring and share with you, chapters or sections of the book, Credit Score Tips and Tricks, as series of articles here. This is the number 13-1 of such a series.
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