Texas Statute of Limitations on Debt
Texas applies a four-year statute of limitations uniformly to consumer debt — credit cards, medical bills, auto loans, personal loans, and oral agreements all expire after four years.
| Debt Type | Statute of Limitations | |---|---| | Credit card debt (open account) | 4 years | | Medical debt | 4 years | | Auto loans (written contract) | 4 years | | Personal loans (written contract) | 4 years | | Oral contracts | 4 years | | Promissory notes | 4 years |
The clock starts from the date of default or last payment. After four years, collectors cannot win a lawsuit against you in Texas court. The debt can still be reported on your credit file until the federal seven-year mark.
Texas law also requires collectors to disclose when a debt is time-barred — and prohibits them from suing on time-barred debt or threatening to do so.
Texas-Specific Consumer Protections
Texas Debt Collection Act (TDCA, Tex. Fin. Code § 392.001 et seq.) Texas has its own comprehensive debt collection law. Unlike the federal FDCPA, the TDCA applies to original creditors as well as third-party collectors. It prohibits harassment, false representations, abusive tactics, and threats to take action the collector has no legal right to take. Violations give consumers a right to sue for actual damages plus $100 per violation, plus attorney's fees.
Texas Finance Code § 392.307 — Time-Barred Debt Texas law specifically prohibits filing a lawsuit to collect a time-barred debt and prohibits threatening to do so. It also requires debt collectors to notify consumers in writing when a debt is past the statute of limitations before attempting to collect. This is more protective than most states.
Texas Wage Exemption Texas provides near-total wage exemption: current wages (wages earned but not yet paid) are completely exempt from garnishment for most consumer debts. Even after a judgment, a creditor generally cannot garnish your ongoing wages in Texas — one of the strongest wage protections in the US.
Texas Homestead Exemption Texas has an unlimited homestead exemption on value (with acreage limits). Your primary home is fully protected from most creditor claims, regardless of its value.
How to File a Complaint in Texas
Texas Attorney General's Office — Consumer Protection
- Website: texasattorneygeneral.gov/consumer-protection
- Phone: 1-800-621-0508
- Online complaint portal available
Texas Office of Consumer Credit Commissioner
- Website: occc.texas.gov
- Phone: (512) 936-7600
- For complaints about licensed consumer credit licensees
Federal Rights That Apply Regardless of State
- Fair Credit Reporting Act (FCRA): Dispute inaccurate items; bureaus have 30 days to investigate.
- Fair Debt Collection Practices Act (FDCPA): Federal collector standards, supplemented by TDCA.
- Fair Credit Billing Act (FCBA): Billing error protections on credit cards.
File at consumerfinance.gov/complaint.
Your First Action Step
Texas's combination of a four-year SOL, TDCA coverage of original creditors, near-total wage exemption, and unlimited homestead protection makes it one of the most consumer-friendly states in the country. Start by pulling your credit reports at annualcreditreport.com. Any debt with a default date more than four years ago is time-barred for litigation. Document every collector contact, dispute inaccuracies in writing to each bureau, and consult a Texas consumer attorney if any collector threatens to sue on an expired debt.