Legal Question in Banking Law in Alabama

Statute of Limitations

Today I received a letter from a collection agency stating that my account has been placed with them for collection by a bank that I last did business with 3 years ago. The amount is only $71.29 but I have no records from 3 years ago!! Someone told me that the statute of limitations in Ala is 2 years, but would it apply to this situation? The only business I had with this bank was checking and savings accounts. The letter does not give any details as to what the $71.29 represents. Who would give me this info, the bank or the coll agency? If I do not settle this, can the agency put this on my credit report?


Asked on 9/10/03, 12:53 am

1 Answer from Attorneys
Robert Kreitlein Robert Kreitlein, Attorney at Law

Re: Statute of Limitations

The statute of limitations for actions to recover money due by an open or unliquidated account in AL is 3 years from the date of the last item on the account or from the time when the account was due, such as a revolving credit line. The statute of limitations only applies to bringing an action in court, however. They can still attempt other means of collection, such as showing the debt on your credit report. You have 30 days to dispute the debt and request verification (in writing) from the collection agency. You should send them a letter disputing the debt and requesting the proof. That will temporarily forestall further collection efforts and allow you a chance to see what the money is for. Good luck.

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Answered on 9/10/03, 10:59 am


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