HB456 Alabama 2017 Session

Summary

Primary Sponsor

Marcel Black

Democrat

Session

Regular Session 2017

Title

Debt, open-end credit accounts including credit card debt, statute of limitations at six years, Sec. 6-2-34 am'd.

Summary

HB456 would require civil actions to recover debt on open-end credit plans, including credit cards, to be filed within six years.

What This Bill Does

It amends Section 6-2-34 to add a six-year deadline for actions to recover debt on open-end credit plans, including credit card debt and any accrued interest. It defines "credit card" as a revolving account where debt and interest accumulate and periodic statements are provided. The act clarifies that this provision is declaratory of existing law and aims to clarify when such money claims must be started. It becomes effective immediately after the governor signs it into law.

Who It Affects

• Debtors who owe or may owe debt on open-end credit plans would have to bring lawsuits within six years, including any accrued interest.
• Creditors and lenders that offer open-end credit (like credit cards) would need to file recovery actions within six years to collect debts.

Key Provisions

• Adds a six-year statute of limitations for recovery of debt on open-end credit plans, including credit card debt and accrued interest.
• Defines 'credit card' as a revolving credit account with periodic interest and statements for purposes of this provision.
• Declares the act declaratory of existing law.
• Effective immediately following the governor's approval.

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

Subjects

Banks and Banking