HB117 Alabama 2018 Session

Summary

Primary Sponsor

Paul Beckman

Republican

Session

Regular Session 2018

Title

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

Summary

HB 117 would set a six-year deadline to sue to collect debt on open-end credit plans, like credit cards, in Alabama.

What This Bill Does

It amends Alabama's code to require that civil actions to recover debt from open-end credit plans must be commenced within six years. It defines open-end credit plans and states that the six-year limit includes any accrued interest as provided by the contract. It also notes that the act clarifies existing law and would take effect immediately after Governor's approval.

Who It Affects

• Creditors and lenders: would be limited to filing lawsuits to collect open-end debt within six years.
• Borrowers and consumers: with open-end debt (such as credit card debt) would face a six-year deadline for lawsuits to recover that debt.

Key Provisions

• Adds new subsection (10) to Section 6-2-34 stating that actions for the recovery of debt on an open-end credit plan, including credit card debt or similar revolving debt, and any accrued interest on the debt, must be commenced within six years.
• Defines 'credit card' for purposes of this limit as a revolving credit account where the debtor accrues debt and interest and receives periodic statements.
• Declares the act declaratory of existing law and makes the provisions effective immediately after approval by the Governor.

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