Source: https://debtreliefwatch.shipkevich.com/alabama-debt-settlement-laws/
Timestamp: 2020-03-28 17:32:22
Document Index: 539373468

Matched Legal Cases: ['§1', '§3', '§ 1692', '§ 1692', '§492', '§1']

Alabama – Debt Relief Watch – Debt Relief Industry News
Alabama Debt Settlement Laws, and Debt Collection Laws
Alabama Debt Settlement Laws
No license is required presently.
Pending Alabama Debt Settlement Legislation:
Alabama House Bill 215 Money Transmitter Act amendment now governs Alabama debt settlement services that accept a payment from debtors for the purpose of paying a debtor’s bills, invoices, or accounts.
Section 8-7-3 of Alabama securities law stated that license is required to “engage in the business of selling, issuing, or otherwise dispensing checks or receiving money as agent for obligors for the purpose of paying such obligors’ bills, invoices, or accounts;” however, effective August 1, 2017 this requirement was repealed by Act 2017-389, §1.
(Acts 1961, Ex. Sess., No. 177, p. 2142, §3.)
Alabama Filing Fees and Courts Costs
Filing fees and court costs in the state of Alabama vary greatly depending on the county and on the monetary amount the case involves.
Small claims cases filing fees range from $80 to $150.
U.S. District Court filing fees increase significantly;
The Northern District of Alabama court filing fee costs $350.00
The Middle District of Alabama court filing fee costs $350.00
The Southern District of Alabama court filing fee costs $350.00
Administrative fees are usually $50 not included in the filing costs, and other miscellaneous cost may apply. Notice of Appeal or Appellate court fees for the State of Alabama combines the district court filing fees for a total $505.00. Additional costs apply to service of process, motion for judgement, garnishment, and for multiple defendants.
“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 definition does 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 Licensing
Debt Collection Companies have to acquire a license and pay a licence tax depending on town and city population:
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).
(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §492; Act 2001-454, p. 595, §1.)
The Alabama statute of limitations provided in Alabama Code Section 6-2-34 governs the maximum period for debt collection of unpaid debts. Once the debt matures past the maximum years, no legal action can be taken to collect the debt. Collection lawsuits are based on breach of contract written, oral, and for promissory notes. Open accounts include credit cards.
Written Contracts: 6 years.
Oral Contracts: 6 years.
Promissory Notes: 6 years.
Open-ended or unliquidated accounts: 3 years.
Pending Alabama Debt Collection Legislation:
Alabama House Bill 117 was introduced on January 9, 2018 and would change the above mentioned Section 6-2-34 the statute of limitation for open-ended accounts. HS 117 would change civil action to recover debt on an open-end account, which includes credit card debt and similar revolving dent, to be commenced within six years.
Alabama Debt Relief Statistics