TexasState Collection Laws

STATE INTEREST RATES AND USURY LIMITS:

• Legal Rate: 6%

• Contract Rate: 10% a year. Tex. Fin. Code Ann. § 302.001

• Open-End Account: up to 21% a year. Tex. Fin. Code Ann. § 303.009(d)

• Judgment Rate: 18% a year or rate specified in contract. For the interest rate not in contract, 5% a year if the prime rate as published by the Board of Governors of the Federal Reserve System is less than 5% or 15% if the published prime rate is more than 15%. Tex. Fin. Code § 304.004.

 

LEGAL AGE:

• Age of Majority: 18

• Emancipation:  Must be a resident of the state and at least 17, or at least 16 years of age, and living apart from parents/guardian and is supporting themselves financially. Tex. Fam. Code Ann. § 31.001(a)(3)-(5)

• Contracts: A minor can avoid and disaffirm a contract unless when entering into the contract the minor misrepresented his age. Youngblood v. State, 658 S.W.2d 598, 599 (Tex. Crim. App. 1983)

 

DEBT RESPONSIBILITY: DOCTRINE OF NECESSARIES

• A spouse is personally liable for acts of the other spouse if the spouse acts as an agent for the person or the spouse incurs debts for necessaries. A debt collector may not use unfair means to seek a written statement that specifies the person’s obligation. Tex. Fam. Code Ann. § 3.201. Tex. Fin. Code Ann. § 392.303(1)

• A court may order either or both parents to support the child until age 18 or until graduation from high school, until emancipation through marriage, until death of child or if the child is disabled then the parents must support the child indefinitely. Tex. Fam. Code Ann. § 154.001(a),(a-1)

 

STATUTE OF LIMITATIONS FOR CIVIL ACTIONS:

• Contracts: 4 years of any contract for sale and 4 years after the day the cause of action accrues for any debt.

•Judgments-Domestic: 10 years

 

This information is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Although we attempt to provide up-to-date information, laws and regulations often change. We make no claims, promises, or guarantees about the accuracy or completeness of this document. For legal advice please contact an attorney. 

Contacted
by BCC?