Dealing With Debt Collectors in Alabama (2026)
Reviewed by DocDraft Legal Team · Alabama · Last updated August 13, 2026
This page covers dealing with debt collectors in Alabama. Alabama has no comprehensive state fair-debt-collection act, so third-party collectors are governed mainly by the federal Fair Debt Collection Practices Act (FDCPA, 15 U.S.C. 1692) and CFPB Regulation F. What is distinctly Alabama is the statute of limitations on debt: six years for a written contract (Ala. Code 6-2-34) and only three years for an open account such as most credit cards (Ala. Code 6-2-37). Alabama also caps wage garnishment and shields your homestead, so a collector cannot reach everything even with a judgment. The Alabama Attorney General's Consumer Interest Division handles collection complaints.
What is the statute of limitations on debt in Alabama?
It depends on the debt type. A written contract has a six-year limit under Ala. Code 6-2-34, while an open account such as most credit card debt has a shorter three-year limit under Ala. Code 6-2-37. Once the period runs, the debt is time-barred and a collector should not sue you on it.
Can my wages be garnished for consumer debt in Alabama?
Yes, after a creditor obtains a court judgment. Alabama caps garnishment under Ala. Code 6-10-7, which exempts 75 percent of your compensation, so a collector generally cannot take more than 25 percent of your disposable wages, and less if your earnings are low. Federal limits also apply.
How do I stop a debt collector from contacting me in Alabama?
Send the collector a written cease-communication letter under 15 U.S.C. 1692c(c). Once it receives your letter, it must stop contacting you, except to confirm it is stopping or to say it may pursue a specific remedy like a lawsuit. Keep proof of mailing. This does not erase the debt.
What can a debt collector not do to me in Alabama?
Because the FDCPA governs in Alabama, a collector cannot harass or abuse you, use threats or obscene language (15 U.S.C. 1692d), or lie about the amount or legal status of a debt or falsely threaten arrest (15 U.S.C. 1692e). It also cannot reveal your debt to third parties.
How Alabama regulates debt collectors
Alabama does not have a comprehensive state fair-debt-collection practices act of its own, so the conduct of third-party collectors is governed primarily by the federal FDCPA (15 U.S.C. 1692) and the CFPB's Regulation F; the Alabama Consumer Credit Act, or Mini-Code, chiefly regulates credit transactions rather than serving as a standalone collector-conduct statute.: confirm the precise scope of any Alabama debt-collector licensing requirement and administering agency. Where Alabama law is decisively different is on how much a collector can actually take. Even with a judgment, Ala. Code 6-10-7 exempts 75 percent of your wages, so garnishment is generally capped at 25 percent of disposable earnings, and Ala. Code 6-10-2 gives a homestead exemption (statutory base $15,000, subject to inflation indexing) that shields your primary residence up to 160 acres. Consumers who believe a collector broke the law can file with the Alabama Attorney General's Consumer Interest Division through the Consumer Complaint form at alabamaag.gov or by calling the Consumer Hotline at 1-800-392-5658.
Relevant Laws
Alabama Statute of Limitations - Six Years, Ala. Code 6-2-34
Sets a six-year limitations period for actions on written contracts and certain other obligations in Alabama. This is the period that typically applies to a debt founded on a signed written agreement, measured from the date the cause of action accrued.
Alabama Statute of Limitations - Three Years, Ala. Code 6-2-37
Sets a three-year limitations period for actions on open or unliquidated accounts, computed from the date of the last item of the account. This shorter period commonly applies to credit card and other revolving open-account debt in Alabama.
Alabama Wage and Homestead Exemptions, Ala. Code 6-10-7 and 6-10-2
Section 6-10-7 exempts 75 percent of a person's wages from garnishment, capping most consumer garnishment near 25 percent of disposable earnings. Section 6-10-2 provides the homestead exemption protecting a primary residence up to 160 acres from levy and sale for debts.
Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692
Because Alabama has no comprehensive state fair-debt act, this federal statute is the main law governing third-party collectors here. It bars harassment (1692d), false or misleading representations (1692e), and unfair practices (1692f), and creates the validation right (1692g).
Regional Variances
Alabama statute of limitations by debt type
Written contract - 6 years
A debt founded on a written contract is subject to a six-year limitations period under Ala. Code 6-2-34, running from when the cause of action accrued (generally the breach or default).
Open account / credit card - 3 years
An open or unliquidated account, which covers most credit card and revolving debt, has a three-year limitations period under Ala. Code 6-2-37, computed from the date of the last item of the account. Note an account stated may instead fall under the six-year rule.
Oral contract - 6 years
Alabama does not use a separate short period for oral contracts the way many states do; contract actions not otherwise specified fall under the six-year period of Ala. Code 6-2-34.: confirm the exact subsection applied to purely oral agreements.
Promissory note - 6 years
A promise in writing, such as a promissory note not under seal, is generally governed by the six-year limitations period of Ala. Code 6-2-34.: confirm treatment of negotiable instruments under Alabama's UCC provisions where they differ.
Suggested Compliance Checklist
Read the validation notice and diary the 30-day deadline
Within 5 days of first contact days after startingConfirm the collector sent the Regulation F validation notice (12 CFR 1006.34) naming the creditor, amount, and your dispute rights. Note the date received and calendar the 30-day window to dispute under 15 U.S.C. 1692g.
Confirm the Alabama statute of limitations for this debt
Before paying, settling, or promising anything days after startingDetermine whether the debt is a written contract (six years, Ala. Code 6-2-34) or an open account such as a credit card (three years, Ala. Code 6-2-37). A payment or written acknowledgment can restart the clock, so check before you act on an old debt.
Send a written debt validation letter
Within 30 days of receiving the validation notice days after startingIf you do not recognize the debt or the amount looks wrong, mail a written dispute and request for verification within the 30-day window. This forces the collector to stop collecting until it mails you proof of the debt.
Send a cease-and-desist letter if you want contact to stop
As soon as you decide to stop contact days after startingUnder 15 U.S.C. 1692c(c), a written cease-communication letter requires the collector to stop contacting you once received, except to confirm it is stopping or to state it may pursue a specific remedy. Keep proof of mailing.
File a complaint with the Alabama AG and the CFPB
Within 1 year of any FDCPA violation days after startingSubmit the Alabama Attorney General Consumer Complaint form at alabamaag.gov or call 1-800-392-5658, and file at consumerfinance.gov/complaint. Because 15 U.S.C. 1692k generally requires suit within one year, consult an Alabama consumer attorney promptly.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Read the validation notice and diary the 30-day deadline | Confirm the collector sent the Regulation F validation notice (12 CFR 1006.34) naming the creditor, amount, and your dispute rights. Note the date received and calendar the 30-day window to dispute under 15 U.S.C. 1692g. | - | Within 5 days of first contact |
| Confirm the Alabama statute of limitations for this debt | Determine whether the debt is a written contract (six years, Ala. Code 6-2-34) or an open account such as a credit card (three years, Ala. Code 6-2-37). A payment or written acknowledgment can restart the clock, so check before you act on an old debt. | - | Before paying, settling, or promising anything |
| Send a written debt validation letter | If you do not recognize the debt or the amount looks wrong, mail a written dispute and request for verification within the 30-day window. This forces the collector to stop collecting until it mails you proof of the debt. | debt-validation-letter | Within 30 days of receiving the validation notice |
| Send a cease-and-desist letter if you want contact to stop | Under 15 U.S.C. 1692c(c), a written cease-communication letter requires the collector to stop contacting you once received, except to confirm it is stopping or to state it may pursue a specific remedy. Keep proof of mailing. | cease-and-desist-letter | As soon as you decide to stop contact |
| File a complaint with the Alabama AG and the CFPB | Submit the Alabama Attorney General Consumer Complaint form at alabamaag.gov or call 1-800-392-5658, and file at consumerfinance.gov/complaint. Because 15 U.S.C. 1692k generally requires suit within one year, consult an Alabama consumer attorney promptly. | - | Within 1 year of any FDCPA violation |
Frequently Asked Questions
Most credit card debt in Alabama is treated as an open account, which carries a three-year limitations period under Ala. Code 6-2-37, measured from the last item of the account. If a signed written agreement governs the debt, a six-year period under Ala. Code 6-2-34 may apply instead.: confirm how Alabama courts classify a specific card agreement.
Alabama does not have a comprehensive state fair-debt-collection practices act, so third-party collectors are governed mainly by the federal FDCPA (15 U.S.C. 1692) and CFPB Regulation F. The Alabama Consumer Credit Act (Mini-Code) regulates credit transactions but is not a standalone collector-conduct statute like those in some other states.
After obtaining a judgment, a collector in Alabama can generally garnish up to 25 percent of your disposable wages, because Ala. Code 6-10-7 exempts 75 percent of your compensation. Federal law under the Consumer Credit Protection Act sets a parallel cap, and low earners may have even more protected.
Alabama's homestead exemption under Ala. Code 6-10-2 shields your primary residence up to 160 acres against levy and sale for debts, up to a statutory value (base $15,000, subject to inflation indexing).: confirm the current indexed exemption amount. Equity above the exemption may not be protected, so review your situation carefully.
Yes. Under the federal FDCPA (15 U.S.C. 1692k) you can sue a collector that violates the Act, generally within one year of the violation, and recover actual damages, statutory damages up to $1,000, and attorney's fees and costs. An Alabama consumer attorney can evaluate whether you have a claim.
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