Alabama Collection Laws

Interest rate

• Legal: 6%
• Judgment: 12%

Statute of limitations in years

• Open Acct.: 3
• Written Contract: 6
• Domestic Judgment: 20
• Foreign Judgment: 20

Bad check laws

• Greater of $10 or Actual Bank Charges

General Garnishment exemptions

• 75% of wages are exempt from garnishment

Collection agency bond & license

• 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.