Credit card holders are bound to the card issuing bank’s rules and regulations, and this includes paying at least the monthly minimum amount due on time.  While the basics are the same from state to state, each individual state has different credit card rights and laws for the individuals living there. Texas is no exception, and the state has several different laws and provisions put into place to protect credit card holders’ rights.  The Credit Card Holder’s Bill of Rights Act of 2008 was recently passed and applies to all residents of the United States, including Texas.  This law will help prevent new card from having extremely high rates and fees, less implementation of over the limit fees, and will downsize the older bait and switch tactics.

A well-known and important credit law in Texas is the Statute of Limitations law.  This law applies in many states, and refers to the number of years, or amount of time, it takes before a credit card company can take a cardholder to civil court to recoup any financial losses.  In Texas, the SOL or Statute of Limitations law is for 4 years.  This means that creditors cannot sue you or try to collect any outstanding debt after four years.  These laws are designed to protect the credit card holder so that the issuing bank cannot add on extra fees, interest, etc. after this period of time.

Another important law in Texas is the Texas Finance Code.  This law protects the consumer from unsavory collection practices, and helps to protect credit card holders from any sort of violations committed by a collection agency.  This law also protects credit card holders from things like conflict of interest when involved in a court case, and it allows them to file formal complaints against collection agencies.  This is an excellent way to get the word out about companies who are mistreating consumers.  It applies to harassing phone calls and letters of collection that are often received in the mail.  If someone in credit card debt that is too deep cannot get out of it, residents of Texas can file bankruptcy as well.  It is always a good idea to consult a professional attorney and find out all of your options before filing bankruptcy.

There are many other laws that pertain to credit cards and the residents of Texas. Many of them apply to all credit card account holders nationwide since they are federal laws.  If you live in Texas, you do have rights when it comes to your credit card debt.  While it is something that should always be expected to be repaid, there are some limits that card issuers must obey including exorbitant fees.  Be aware of what your protections are under the law so you can avoid any large problems such as frivolous lawsuits or having your identity at risk by collections agencies.  Once you know what your rights are, you can be a better armed consumer, and be more prepared if you ever happen to default on your credit card.