If you live in Texas, debt collectors have 4 years to sue you for not paying your credit card. If one waits longer than that to file, the lawsuit will be dismissed because of the statute of limitations.
If you are lucky enough to get through the 4 year period without being sued, I advise a 2 step process for dealing with each new debt collector that contacts you about the account.
First, send a letter to advise the debt collector that you believe that the account is beyond the limitations period and ask it to check its records to verify that the account went into default more than 4 years ago. It may simply stop contacting you after receiving that letter. If the collector responds and verifies that the default is more than 4 years old, keep the response as it will come in handy if the account gets sold or referred to another debt collector. You can use it as exhibit 1 in your letter notifying the new collector that the account is barred by limitations.
Once you get the response, or if the collector tries to contact you again without responding to your verification request, step 2 is a cease communication letter, in which you ask for no more contact about the debt.
These are very simple letters:
Letter 1: Notice of Limitations and Verification Request
Dear Mr. Debt Collector:
According to my records, it has been more than 4 years since this account went into default, which means that it is too late under Texas law to file suit on the account. Please provide me with verification of the default date and the date of my last payment on the account.
Sincerely,
Lucky Debtor
Letter 2: Cease Contact
Dear Mr. Debt Collector:
Thank you for verifying that my account went into default more than 4 years ago. Please do not contact me about this debt again.
Sincerely,
Really Lucky Debtor
These letters can be used in other states, but the limitations period varies from state to state, so you need to check your own state law about that.
The default date I discuss above is the date you first breached your credit card contract. That generally means the date you failed to make the minimum payment due by the due date. If you cure the default by getting the account current, the clock resets.
In Texas, you cannot extend the limitations period by talking to a debt collector. In order to extend the limitations period, you have to acknowledge the debt in a signed writing. You also can’t extend the limitations period by making a partial payment. Only a payment that completely cures the default will reset the limitations clock.