Time Limit For Collector To Sue Me In Alabama
“What is the time Limit For Collector To Sue Me In Alabama?”
The answer is a little harder than you might imagine.
Lawsuits on old credit cards are typically brought within 3 years of not making payments or within 6 years of your last payment
Three years is the statute of limitations for an “open account” in Alabama.
Most credit cards are considered an “open account.”
So why do debt buyers sue you more than 3 years?
Because they claim they are suing under a legal theory of breach of contract or “stated account/account stated”.
Those theories are typically six years to bring suit.
For most debt buyer lawsuits, I don’t believe breach of contract is the correct legal theory but understand you will often be sued under this theory.
Same thing with the stated account/account stated — its a theory that doesn’t fit credit cards but you can almost be certain it will be in every debt buyer lawsuit.
If you are under three years, it is almost certain that you can be sued.
Between three and six years?
Probably you will be sued.
I wish I could give you absolute guidance on this but I can’t.
There are so many individual factors.
Have you made payments since the debt defaulted?
Where were you when you took out the debt?
What does the card holder agreement say?
You can always ask the collector or the collection lawyer if this is in the statute of limitations and why they feel the way they do.
They may or may not answer you, but at least you’ll get some information.
On old auto loan cases, the statute of limitations is typically four years
Normally this is how lawsuits on old auto loans happen.
You go to a dealer and buy a car.
The dealer is listed as the creditor/seller.
Then the dealer supposedly assigns the loan to some other company — maybe Santander.
Normally, after a repossession, Santander claims it sold your loan to Cascade Capital.
Finally, Cascade often argues it sold your loan to Velocity Investments. Who then sues you.
Under this pattern of facts, the statute of limitations in Alabama is four years. (Note: some of these debt buyers will argue against this but they are simply wrong. Wishful thinking on their part….)
In our next post on this subject of time limits for collectors to collect, we will look at the time limits for credit reporting. You can find our article/video on the time limit to collect generally. Finally our overview article discusses all three time periods for collectors to collect.
Contact us if you would like to talk about your unique situation.
If you have any questions, give us a call at 1-205-879-2447.
We will be glad to help you figure out the best course of action.
I look forward to talking you!
Have a great day.