Alabama debt collection laws - Your rights

Being harassed by a debt collector can be terrifying. Fortunately, the Fair Debt Collection Practices Act protects consumers from harassment and other abusive tactics. Some states have passed legislation to safeguard consumers from unfair debt-collection tactics. There is state legislation that governs debt collectors in Alabama, which is there under Ala. Code §40-12-80.

Debt collection laws in Alabama

The federal Fair Debt Collection Practices Act, which mandates that debt collectors disclose their identity and the nature of their request for payment from you upfront, applies to Alabama residents. It forbids abusive actions by debt collectors, such as calling you before 8 a.m. or after 9 p.m. or using foul language.

The FDCPA also states that you can request that collectors stop calling you, and they must abide by your request. It also provides you the choice to file a lawsuit against harassing creditors to recover damages, court expenses, and legal fees.

Remember that debt collectors cannot confiscate your assets or deduct money from your paycheck without a court order. Additionally, under your state's rules, you must receive a formal summons if you are being sued.

If you receive a summons, speak with a lawyer immediately for assistance with the procedure. Before discussing your alternatives with a knowledgeable professional, never sign anything you are unsure about or commit to any payment arrangements.

The homestead exemption threshold in Alabama is $4000 and 160 acres. You are exempt from all state ad valorem taxes (the amount based on the property's value) if you are 65 years of age or older, made less than $12,000 last year, or are on disability. You are also exempt from the $5,000 assessed value on the county ad valorem taxes. Also excluded are the proceeds from life insurance policies.

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Alabama fair debt collection laws

The statute of limitations in Alabama is three years for unliquidated accounts and six years for liquidated accounts. A third-party collector breaches the law if they try to act after those deadlines.

Despite not having the most comprehensive consumer protection legislation, Alabama does have one additional consumer right that you and your attorney may find helpful. It is called Alabama Deceptive Trade Practices Act.

The Act enhances the FDCPA by extending its reach to original debt creditors and debt collectors. The FDCPA only applies to third-party collectors. Thus an initial creditor (such as a bank) could call you as much as they wanted. This is advantageous to the consumer.

One thing to keep in mind is that, under the DTPA, you must send a pre-lawsuit letter to the debt collector before filing a lawsuit to allow them to reply and correct the mistake.

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How to respond to debt collection letters

You have 30 days after receiving a notice from a debt collection firm to look into the debt's validity. Do not delay with this. Once you have received a debt validation letter, the collection agency will be forced to send proof that you are responsible for the debt. They are not permitted to pursue collection efforts against you until they do so.

After the 30-day window, you may still challenge your debt by writing a letter stating that you will not be paying it. You might want to seek legal assistance to help you battle the creditor if they send you another letter. You can write a cease-and-desist letter to a creditor to tell it to stop contacting you if it is harassing you.

You can complain to the state if you believe a creditor has treated you unfairly or improperly.

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In Alabama, how long may debt collectors attempt to collect?

Depending on the type of debt, debt collectors may have to pursue you for a certain period: The statute of limitations for unpaid state taxes is ten years. The statute of limitations for auto loans and credit cards is three to four years. Mortgage and medical debt don't expire for another six years.

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Can you be sent to jail in Alabama for debt?

In six states, you cannot be imprisoned for any debt, regardless of whether you are in contempt of court for failing to pay it. These six states are Alabama, Wyoming, North Mexico, West Virginia, South Dakota, and North Dakota.

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Can debt collectors garnish your wage in Alabama?

Debt collectors are not allowed to pursue consumer debts for more than 25% of their disposable income or 30 times the federal minimum wage, whichever is less.

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Can a debt collector sue you in Alabama?

They can still file a lawsuit against you but cannot call you consistently. You have the right to sue a debt collector if they violate your rights. Any actual damages, up to $1,000 in additional compensation, lawyer expenses, and court costs are all possible. Call 800-530-OVLG to contact Lyle Solomon’s assistants if you believe you have the right to sue a debt collector.

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How long is a garnishment effective in Alabama?

The garnishment continues until the Court issues an Order, but once that happens, the withheld wages should be released to you unless the creditor contests them. If you submit a special motion asking Court to do so, the Court could momentarily halt the garnishment during the 15 days.

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How can you deal with collection debt in Alabama?

The debt collection laws in Alabama have clear guidelines on it. Consumers must pay off valid collection debt. Of course, they are free to request written debt validation from collection agencies. Consumers are obligated to pay back the debt once it has been verified. They might seek assistance from debt relief agencies if they cannot cover the full sum.

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Where can you seek debt relief in Alabama?

For more than 14 years, OVLG has provided debt relief services to Alabama consumers, particularly when consolidating credit cards and other unsecured debt. We're pleased to have developed such wonderful connections with people and organizations.

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There are advantages to working with a law company like OVLG

First and foremost, and our goal is to assist our clients in identifying ways to permanently overcome their debt and prevent them from ever needing debt relief. This goal applies to everyone who asks for help, whether they end up becoming a client or not.

You will be treated like a friend, second. Numerous people have benefited from the assistance of attorney Lyle Solomon's assistants. They are aware from years of experience that each person who contacts us for debt relief has a different story and is unique.

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Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult a qualified attorney for advice on your specific situation.