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Alabama Credit Laws

INTEREST RATE (Legal: 6%) the general usury limit is 8%. The judgment rate is 12%.
STATUTE OF LIMITATIONS (In Years) Open Acct: 3 - Written contract 6 - Domestic Judgment 20 - Foreign Judgment 20
BAD CHECK LAWS (Civil Penalty) Actual Bank charges
GENERAL GARNISHMENT EXEMPTIONS   75% of wages are exempt from garnishment
HOMESTEAD EXEMPTION   The limit in Alabama is $5,000 for real property. The property may not exceed 160 acres. A couple may double these amounts.
ADDING FEES FOR COLLECTION  

silent in addressing whether collection agencies may add interest, fees or collection charges.
NOTICE OF DISHONORED CHECK  

crime of negotiating a worthless negotiable instrument if the person negotiates or delivers a negotiable instrument for a thing of value and with the intent, knowledge, or expectation that it will not be honored by the drawee.

  1. drawer had no account with the drawee at the time the negotiable instrument was negotiated or delivered.
  2. Payment was refused by the drawee for lack of funds
  3. Notice that payment was refused is mailed by certified or registered mail and is returned undelivered to the sender, when the notice is mailed within a reasonable time after dishonor to the address printed on the instrument or given by the maker or drawer at the time of issuance of the instrument.
Negotiating a worthless negotiable instrument is a Class A misdemeanor
SERVICE FEES   Bad check charge; deemed not finance charge.