SB29 Alabama 2015 Session

Summary

Primary Sponsor

Linda Coleman-MadisonSenator

Democrat

Session

Regular Session 2015

Title

Consumer, collection of debts, exemptions

Summary

SB29 establishes the Family Financial Protection Act to curb abusive debt collection, require debt documentation, and expand consumer exemptions in Alabama.

What This Bill Does

It requires debt buyers and collectors to have basic information about a debt, including proof of indebtedness and the original creditor, before collecting. It bans collecting debts without a copy of the original contract and requires passing along all communications and known disputes as the debt changes hands. It strengthens consumer protections in lawsuits and arbitrations with advance notice, documentation requirements, license verification, and limits on interest and attorney's fees. It expands and clarifies exemptions for household goods, vehicles, tools, and other assets, tightens garnishment rules, and sets a uniform statute of limitations for consumer debts.

Who It Affects

• Consumers who owe debt will gain stronger verification, notice, and exemption protections, plus rights to record debt-collection calls and protections against seizure.
• Debt collectors, debt buyers, and creditors face new requirements for licensing, documentation, disclosures, and limits on collection practices.

Key Provisions

• Debt collectors and debt buyers must have basic information about a debt before collection, including proof of indebtedness, date, original creditor, and itemized fees, and must possess a copy of the original contract.
• Debt buyers and creditors must retain and pass on all communications from the consumer about the debt and information about known disputes and defenses to the next holder.
• Consumers may record abusive debt-collection calls; changes to consumer form contracts require written consent; and provisions cannot include choice of law or forum selection that disadvantages the consumer.
• Before filing suit or arbitration to collect a debt, the creditor must provide 30 days' notice and attach sufficient documentation showing the debt's amount, ownership, and basis; courts require verified documentation and proper licensing.
• A single uniform statute of limitations for consumer debts is established, cannot be waived, and debts are extinguished after the period; collection on stale debts is prohibited; and there are protections regarding default judgments and remedies.
• Exemptions are expanded to cover items such as household goods, a motor vehicle up to specified values, tools of the trade, burial plots, public benefits, health and life insurance, education accounts, and other designated exemptions, with rules on tracing and adjusting dollar amounts.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Consumers and Consumer Protection