SB288 Alabama 2016 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Session

Regular Session 2016

Title

Credit card debt, three year statute of limitations for delinquent card accounts, Sec. 6-2-37 am'd.

Summary

SB288 would require that lawsuits to collect money owed on credit cards or other revolving accounts be filed within three years.

What This Bill Does

The bill amends Alabama's three-year statute of limitations for actions to recover money on open or unliquidated accounts to include credit card and revolving debt. The three-year period is calculated from the date of the last item on the account or from when the debt is due under the contract or usage. It becomes law on the first day of the third month after it is passed and approved by the Governor.

Who It Affects

• Creditors and debt collectors: must file lawsuits for credit card or revolving debt within three years.
• Debtors/consumers: will be subject to the clarified three-year time limit for actions to recover such debts.

Key Provisions

• Amends Section 6-2-37 to add credit card and other revolving credit accounts to the three-year statute of limitations for actions to recover money due on open or unliquidated accounts.
• States that the time limit is computed from the date of the last item on the account or from the time when, by contract or usage, the account is due.
• Sets the effective date as the first day of the third month after passage and Governor approval (or when it becomes law otherwise).

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

Subjects

Civil Procedure