How can I respond to a debt collector calling or sending a letter in Alabama?

What Alabama law says

Federal law requires a debt collector to give written notice of the amount of the debt, the creditor name, and a statement that the consumer has 30 days to dispute the debt in writing, and that the collector will stop collection while it obtains verification if the consumer timely disputes or requests the original creditor information, under 15 U.S.C. § 1692g. A collector may not apply a payment to a debt that the consumer has disputed when the consumer directs allocation among multiple debts, under 15 U.S.C. § 1692h. Debt collectors also may not use unfair or unconscionable means to collect, and the statute lists prohibited practices, under 15 U.S.C. § 1692f. When a consumer experiences an adverse action based on a consumer report, the user must provide certain notices including the reporting agency and a right to obtain the report, under 15 U.S.C. § 1681m. In Alabama, a creditor that charges an unauthorized excess finance charge may have statutory remedies including refunds and penalties, under Ala. Code § 5-19-19. Alabama case law has noted that a creditor collecting its own debt may not be treated as a FDCPA debt collector in some circumstances, see Complete Cash Holdings, LLC v. Powell, 239 So. 3d 550 (Ala. 2017).

What to do

1. A common first step is to read the collector’s written notice carefully to see if it includes the amount, creditor name, and the 30-day dispute notice required by 15 U.S.C. § 1692g.
2. A common next step is to send a written debt-validation letter within the 30-day period to dispute the debt or ask for the original creditor’s name; collection must cease while the collector verifies the debt if the dispute is timely, under 15 U.S.C. § 1692g.
3. A common option is to send a written cease-communication letter if the consumer wants the collector to stop most calls, recognizing that some communications permitted by statute or court process may continue, and that disputes affect how collectors may apply payments under 15 U.S.C. § 1692h.
4. A common step is to keep records: save copies of letters, note dates and times of calls, and retain any written verification the collector sends, since these documents are relevant to any claim under the federal statutes listed above.
5. A common further step is to review whether any finance charges appear excessive and, if so, consider whether remedies under Alabama’s finance-charge statute might apply, under Ala. Code § 5-19-19.

Grounded in current Alabama law

• statuteAla. Code § 5-19-19
• statute15 U.S.C. § 1692g
• statute15 U.S.C. § 1692h
• statute15 U.S.C. § 1692f
• statute15 U.S.C. § 1692b
• statute15 U.S.C. § 1681m
• caseComplete Cash Holdings, LLC v. Powell
• caseLiberty Loan Corp. v. Mizell
• caseWindsor v. General Motors Acceptance Corp.
• caseGill v. Fidelity Financial Services, Inc.

Every legal statement on this page links to the primary source, verified against CiteLaw's corpus. This page updates automatically when the law changes.