Q: What is the staute of limtations in for credit card debt in alabama is it 3,6, or 9 years?
Normally a suit is brought under one or more of the following: Breach of Contract, Open Account, or Stated Account (Account Stated). The allegation stated in the lawsuit determines the statute of limitation (SOL).Normally in Alabama a breach of contract action is a six year statute of limitations. We see some original creditors (Capital One, Citibank, etc) sue under this but it is not common to see debt buyers sue under this because they rarely have the documents to support making such a claim.
In Alabama, normally an open account is a three year statute of limitations and most credit cards fall under this type of agreement. Most collection agencies or debt buyers do not like this as it is a shorter time period and there is law that suggests (or requires, depending on how it is read) that every charge must be proven by the creditor or debt buyer. The most common type of suit is an account stated suit for which the statute of limitations is six years. Remember if collection actions are brought after the SOL has run they could be violating the Federal Debt Collection Practices Act which governs actions of creditors and third party debt collectors. Should you need any assistance you should contact an attorney.
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