Alabama Debt Collection Laws

by Collection Agency Information

Alabama Debt Collection Laws

In addition to being regulated by the Fair Debt Collection Practices Act (FDCPA), Alabama collection agencies are also regulated by Alabama debt collection laws. Discover: Alabama collection requirements, bad check laws (NSF), statutes of limitations for both debts and judgments, garnishments plus Alabama collection agency license and bonding information.

Summary of the Alabama fair debt collection practices laws:

ALABAMA INTEREST RATE

Legal: 6%
Judgment: 12%

ALABAMA STATUTE OF LIMITATIONS |in years|

Open Accounts: 3
Written Contract: 6
Domestic Judgment: 20
Foreign Judgment: 20

ALABAMA BAD CHECK LAWS |NSF|

Greater of $10 or Actual Bank Charges

ALABAMA WAGE GARNISHMENT EXEMPTIONS

75% of wages are exempt from garnishment

ALABAMA COLLECTION AGENCY BONDING and LICENSING REQUIREMENTS

Bond: No
License: Yes
Fee:
$25 – Population under 20,000
$100 – Population over 20,000
Exemption for out-of-state collectors: Business License not required for out-of-state agency.

Below is the Alabama debt collection statute:

§ 40-12-80. Collection agencies.
Each collection agency shall pay the following license tax: In towns and cities of 20,000 or more inhabitants, $100; in towns and cities of less than 20,000 inhabitants, $25. Each person who shall employ agents to solicit claims for collection from persons, firms, or corporations in the state shall be deemed a collection agency within the meaning of this section. This section shall not apply to any person who is excluded from the definition of the term “debt collector” under the federal Fair Debt Collection Practices Act, 15 U.S.C. § 1692a(6).

Alabama Debt Collection Laws

debtcollectionlaws

Debt Collection Laws

Knowing and abiding to the proper Alabama debt collection laws is important for both creditors and collection agencies alike. There are debtor’s rights attorneys who are just waiting for creditors or collection agencies to slip up. If you mistakenly violate the Alabama debt collection laws, you could create a liability for your business and even open yourself up to a expensive lawsuit.

Please note: Alabama debt collection laws can change over time, and you need to consult with an attorney before you use this information.

Alabama Debt Collection Laws

alabama collection laws, alabama collection agency license, alabama debt collection laws, alabama debt collection law, is alabama exempt from debt collection, alabama collection agency license application, collection laws in alabama