SB29 Alabama 2015 Session

Summary

Primary Sponsor

Linda Coleman-Madison Senator

Democrat

Session

Regular Session 2015

Title

Consumer, collection of debts, exemptions

Description

Under existing law a debt collector is required to be licensed to collect debt in Alabama.

This bill would require debt buyers and other debt collectors to possess certain basic information about the debt before initiating collection efforts, including proof of indebtedness by the consumer, date of the debt, identity of the original creditor, and itemization of all fees, charges, and payments.

This bill would prohibit the collection of a consumer debt by any party not in possession of at least a copy of the original contract, or other documentation evidencing the consumer's liability.

This bill would require a creditor and each subsequent holder of the debt to retain and pass on to the next holder all communications from the consumer concerning the debt and information about all known disputes and defenses.

This bill would allow consumers to record abusive telephone calls by debt collectors.

This bill would prohibit consumers from arrest or imprisonment for failure to pay a consumer debt.

This bill would provide that any changes to a consumer form contract involving financial services shall be agreed to by the consumer in writing.

This bill would prohibit "choice of law" provisions in consumer form contracts that select laws of states other than the consumer's home state.

This bill would prohibit forum selection provisions in consumer form contracts.

This bill would provide that any consumer credit obligation is void if the entity extending the credit did not have a license required by state law.

This bill would provide a single uniform, reasonable statute of limitations for consumer debts.

This bill would provide that the statute of limitations cannot be voluntarily given up or waived.

This bill would extinguish the debt after the statute of limitations passes.

This bill would prevent any collection activities for stale debts.

This bill would require a creditor to provide a consumer with a notice 30 days before filing a legal action or arbitration proceeding to collect a debt.

This bill would require a creditor taking legal action or initiating arbitration to collect a debt to provide adequate documentation about that debt.

This bill would require each debt collector or buyer of a debt to provide a copy of the original contract or other documentation reflecting that the consumer actually incurred the debt.

This bill would provide that the failure to respond will not be deemed as an admission of facts to establishing liability for the debt.

This bill would require an additional notice of the lawsuit to be mailed to the consumer-defendant by the clerk of the court.

This bill would require that any party seeking a judgment for a consumer debt provide the court with sufficient documentation as to the amount, nature, and ownership of the debt.

This bill would allow a court to grant a default judgment to a consumer if he or she appears for trial to defend himself or herself against a collector who fails to appear in court.

This bill would allow a consumer certain amounts of time to ask the court to remove or set aside a default judgment.

This bill would prohibit state courts from confirming an arbitration award unless certain conditions were met, including compliance with other parts of the law.

This bill would limit the amount of interest that can be assessed to a consumer debtor when a debt collector prevails in a collection lawsuit against the consumer debtor.

This bill would prohibit a creditor from seeking attorney's fees from a consumer in a collection lawsuit to only those instances in which the underlying contract or other document obligates the consumer for the fees.

This bill would provide certain exemptions.

This bill would provide for the waivers of personal property exemptions and security interests in exempt personal property.

This bill would provide for homestead exemption.

This bill would provide for scope of exemptions.

This bill would provide for tracing of exempt property.

This bill would provide for the adjustment of dollar amounts.

This bill would provide for the procedures relating to property exempt from levy.

This bill would provide for protection from discharge.

This bill would provide for remedies for wrongful seizure of exempt property.

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Subjects

Consumers and Consumer Protection