Legal Question in Credit and Debt Law in Texas

When Exactly does the Statue of Limitations Start?

I just received a letter from a company who says they have purchased my credit card account from from my original creditor who charged off the account. I looked on my recent credit report and it has my original creditor on it, with information showing the ''Date of Last Activity'' was 06/2001. It also shows status codes starting on 02/2001 with a ''1''...I'm not sure what that means.

My question is, exactly when does this Statue of Limitations start? Also, how much legal authority do these companies have who purchase old unsecure debts who you've never done business with? Thanks. I appreciate any advice I can get.


Asked on 5/14/04, 4:36 am

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: When Exactly does the Statue of Limitations Start?

The statute of limitations starts to run on the day the due payment wasn't made, and there were no subsequent payments made on the account (since that would reset the clock).

Your contract to pay is called commercial paper, and may be bought and sold; each buyer assuming the rights of the seller.

Read more
Answered on 5/14/04, 10:06 am


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Texas