Credit Repair Laws in Texas
Last updated: November 2026. This page is for educational purposes only and is not legal advice. Laws change; verify current statutes with official state sources.
State Snapshot: Texas
Before diving into the details, here are the headline numbers for Texas:
- State Credit Repair Act
- Credit Services Organizations Act
- Bond Requirement
- $10,000
- Contract Cancellation Period
- 3 days under state law
- Debt Collection Deadline (Written)
- 4 years
- Medical Debt Reporting Protections
- No (federal rules)
- Minor Freeze
- Yes
Navigating credit repair in Texas means knowing which state statutes apply, what federal protections exist, and how the two interact. State law here is not light. The Credit Services Organizations Act (Tex. Fin. Code § 393.001 et seq.) mandates that credit repair organizations register through the Texas Secretary of State and maintain a $10,000 surety bond. The deadline for collection lawsuits is 4 years for written contracts and 4 years for oral agreements. Medical debt protections in Texas are limited to federal guidelines and voluntary bureau actions. Freeze protection in Texas goes beyond adults: minors and protected consumers can also have their files locked at no cost.
Credit Repair Organization Laws in Texas
Texas requires credit services organizations to register with the Secretary of State and maintain a $10,000 surety bond. The state limits fees charged for credit repair services related to consumer credit transactions to 10 percent of the amount charged for the transaction. Consumers have a three-day cancellation right consistent with federal CROA requirements.
Federal law adds another layer of protection. The Credit Repair Organizations Act (CROA) requires written contracts, guarantees a three-day cancellation window, and forbids companies from collecting payment before they complete their services.
| Requirement | Detail |
|---|---|
| Statute | Credit Services Organizations Act (Tex. Fin. Code § 393.001 et seq.) |
| Registration | Required with the Texas Secretary of State |
| Surety Bond | $10,000 |
| Written Contract | Required |
| Cancellation Period | 3 days (state law) |
Source: Texas Legislature. Last checked: November 2026.
Statute of Limitations on Debt in Texas
The statute of limitations sets the time period during which a creditor or debt collector can sue to collect a debt. When it expires, the debt is time-barred, which means a collector can no longer sue you over it. The time limit generally runs from the date of your most recent payment or from when the account became past due. Keep in mind that some states allow the clock to restart if you make a payment or acknowledge the debt.
| Debt Type | Time Period |
|---|---|
| Written Contract Debt | 4 years |
| Oral Contract Debt | 4 years |
| Credit Card (Open Account) | 4 |
| Promissory Note Debt | 4 years |
Legal reference: Tex. Civ. Prac. & Rem. Code § 16.004. View the statute. Last checked: November 2026.
Medical Debt Credit Reporting in Texas
There is no Texas-specific medical debt reporting law on the books. Nationally, the three credit bureaus voluntarily removed paid medical debt from reports beginning in 2022. They also do not report medical debts below $500 and give consumers a one-year grace period before new medical collections show up.
Source: Consumer Financial Protection Bureau. Last checked: November 2026.
Credit Freeze Laws in Texas
Think of a credit freeze as a lock on your credit report that only you can open. That blocks most new account fraud. No fees apply when you place, lift, or remove a freeze under current federal law.
| Feature | Availability in Texas |
|---|---|
| Adult freeze (free) | Yes (federal law) |
| Minor freeze | Yes |
| Guardian or conservator freeze | Yes |
| Protected consumer freeze available | Yes |
To place a freeze, get in touch with Equifax, Experian, and TransUnion: equifax.com, experian.com, and transunion.com. You can do this via their websites, over the phone, or through the mail. You can thaw your file for a specific lender or time window, then freeze it again at no charge.
Legal basis: Tex. Bus. & Com. Code § 20.05. View the statute. Last checked: November 2026.
How These Laws Affect You
If you are a Texas resident considering credit repair, the state-level requirements work in your favor. The Credit Services Organizations Act forces companies to register and post a $10,000 bond, which provides a financial backstop if things go wrong. Your cancellation window is 3 days under state law, matching the federal floor. On debt collection, creditors have 4 years to sue on written contracts. For medical debt, you are covered by federal rules and voluntary bureau policies.
Key Things to Know
- Texas caps credit repair fees at 10 percent of the amount charged for consumer credit transactions, one of the few states with a fee cap.
- Texas requires registration with the Secretary of State and a $10,000 surety bond.
- The Texas Credit Services Organizations Act is found in the Finance Code, not the Business Code, reflecting its consumer finance focus.
A Tip for Texas Consumers
Before signing with any credit repair company in Texas, verify that they are registered with the Texas Secretary of State and ask for proof of their $10,000 surety bond. This bond exists to compensate consumers if the company violates the law. Parents in Texas can freeze their children's credit files at no cost, and guardians can do the same for protected consumers. Taking a few minutes to set this up can prevent years of identity theft headaches.
Our Approach for Texas Clients
At ScoreWise, we work with Texas consumers to identify and dispute inaccurate items on their credit reports. We understand the requirements of the Credit Services Organizations Act and make sure our process aligns with both state and federal regulations. Whether you are dealing with collections that exceed the 4-year statute of limitations or errors that need correction, our team reviews all three bureau reports at no charge to identify potential dispute targets.
Credit Law Questions and Answers
Do credit repair companies need to register in Texas?
Yes. Texas requires credit repair organizations to register with the Texas Secretary of State under the Credit Services Organizations Act. A surety bond of $10,000 is also required.
What is the statute of limitations on debt in Texas?
Written contract debt in Texas has a 4-year statute of limitations under Tex. Civ. Prac. & Rem. Code § 16.004. Oral contracts are limited to 4 years. Once the deadline passes, the debt is time-barred and collectors lose the right to sue. Be careful: a partial payment can restart the clock in some states.
Will medical debt show up on my Texas credit report?
Federal rules apply in Texas. Paid medical debt is removed from reports under voluntary bureau policies. Medical collections under $500 are not reported, and new medical collections get a one-year grace period before appearing.
How much does a credit freeze cost in Texas?
Nothing. Federal law eliminated all fees for credit freezes. Every Texas consumer can place, lift, and remove freezes at no cost with Equifax, Experian, and TransUnion. Minors and protected consumers can also get free freezes in Texas.
What is the cancellation period for credit repair in Texas?
State law gives you 3 days to cancel a credit repair contract in Texas. Cancel within this window and you are entitled to a full refund, no questions asked.
Is it possible to fix credit report mistakes without paying in Texas?
Yes. Disputing credit report errors yourself is free and straightforward. The FCRA gives you access to free annual reports through AnnualCreditReport.com. Once you spot an error, file a dispute with the bureau that reported it. You can also file complaints with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov or the Texas Attorney General's office.
Free Credit Report Analysis
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