Alabama - Fair Debt Collection Practices Act

The State of Alabama follows the Fair Debt Collection Practices Act (FDCPA). The FDCPA (15 USC §1692, et. seq.) enacted in 1977. This law protects consumers from unfair collection practices by third-party bill collectors and collection agencies. The Fair Debt Collection Practices Act does not release any person from the responsibility of paying his or her debts but does afford the debtor specific rights if they are harassed by debt collectors.

The Fair Debt Collection Practices Act places specific restrictions on the operations of any Debt Collection Agency in dealing with consumers. The rules that a debt collector must obey are as follows:

• A creditor or collection agency may not contact the debtor prior to 8:00 AM or after 9:00 PM and may not contact debtor at his work place. Abusive or offensive phone calls are also prohibited.
  
  
• A creditor may have a priority interest (for example: a Federal Government agency). If the creditor has a priority interest, that debt must be paid before other, non-prority debts. These debts are mandated through statutory law.
  
  
• The creditor has the right to dispute a possibly non-owed debt. After receiving a "dispute letter" from the debtor the collector must cease their collection efforts until the dispute is resolved. The collection agency must prove the authenticity of the debt by presenting original reports and documents from the real creditor and then sending this proof to the debtor before collection actions can be resumed.

Alabama garnishment exemptions: In Alabama 75% of the wages are exempt from garnishment.

Bad checks in Alabama: According to Section 7-3-118 bad checks are greater than $10 or actual bank charges.

Alabama Collection Agency Bond & License: Business license is not required for out-of-state collectors.