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
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
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