Alabama Collection Agency

AAB should be your commercial Alabama collection agency. Our commercial division provides Alabama or AL commercial debt recovery. AAB has been serving business clients with debt collection since 1973 and we are fully insured Alabama collection agency.

Alabama is one state where written contracts with interest must be under the Usury cap of 8%. Alabama stipulates that any loan agreement that contains a provision for usurious interest to be illegal in the first instances. You may want to consult a lawyer about any Alabama contract issues or retain an Alabama collection agency.

Alabama is different than other states when it comes to licensing an alabama collection agency. A collection agency in Alabama must obtain a General Business License but no Bond or insurance is required. AAB carries $1 Million in errors and omissions and another $1 Million in Liability insurance, which far exceeds the state requirements for an Alabama collection agency.

Below you will find summary points on alabama collection agency regulations and Laws to consider that affect an Alabama collection agency. It is recommended to factor in some of these points and ask questions when placing commercial business debt for recovery with an Alabama collection agency.

Alabama Collection Laws

NOTE: The Alabama information below is summary in nature and subject to change. While we make every effort to insure accuracy, the information below should not be considered legal advice or to be one hundred percent accurate. No warranty is expressed or implied and AAB assumes no liability for its use.

Alabama Collection Interest Rates

Alabama Legal Rate: 6% per annum
Contract Rate: 8% (exception for market rate)
Judgment: 7.5%
Usury % Cap: 8%

An Alabama Collection Agency can only apply interest at the rates above.

Alabama Statute of Limitations

Open Accounts: 3 Years
Oral Contracts: 6 Years
Written Contracts: 6 Years
Contract under Seal: 10 Years
Judgment: 20 Years

Bad or NSF Check collection charges in Alabama

In Alabama: Bad check charge of not more than the greater of either thirty ($30) or an amount equal to the actual charge by the depository institution for the return of unpaid or dishonored instruments.

Alabama Collection Agency Laws

Alabama Collection Agency Licensing: YES (General Business License)
Bond: NOT Required
Exceptions: An out-of-state collection agency, soliciting accounts by letter and/or phone only, and having no agents in Alabama, does not need a license to collect.

The Information above on commercial debt collection and alabama collection agency laws is provided to assist potential clients researching for an Alabama collection agency. Contact an AAB professional today or request a free consultation on the services offered by our Alabama Collection Agency.