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Collections Law/Statute of Limitations in Texas

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Expert: Michael Brotherton - 6/7/2007


Question
QUESTION: I work in Property Management and we have a lease with a retailer, she is a current retailer and she is quoting that past due balances stemming as far back as 1999 aren't collectable because the statute of limitations has expired.  Is she correct?  Can we not collect any items going back to 1999 even though she received her monthly statement every month with these balances?  Please advise.  Thank you so much!


ANSWER: If this debt is beyond 4 years you cannot collect it. It would be difficult to collect your money in TX, garnishment not allowed. Unless you have a judgment I am afraid your debt is uncollectible. The statute runs from the date of last payment or other activities such as a charge on the account by the debtor. You may for a period report the item on their credit report (unless they wish to pay). Offer her a deal to keep it off her credit. If they are a corporation contact Dun and Bradstreet.

---------- FOLLOW-UP ----------

QUESTION: Okay, but just to confirm, we have been billing the retailer a monthly statement with their current month's rent and the past due balance.  They always only pay the current month's rent.  Can they still quote "statute of limitations" when clearly there are charges and credits currently occurring on their account?  Please advise.  Thank you so much for your assistance!  This has been most helpful!

Answer
No, the statute of limitations does not apply here. If they are paying but never catch up you can still collect your money. The statute runs from the date of the last activity which clearly is recent. Collect your money. Give them an ultimatum or some incentive to pay it or do what you have to do to collect it. Have charges accumulated? How much money are you speaking of?  

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Michael Brotherton

Expertise

Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).

Experience

Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.

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