Alabama Collection Agencies

Alabama collection agencies are a smart business solution when dealing with customers who owe you money won't pay.

Alabama businesses face a number of collections problems. Unpaid bad debt creates negative cash flow for your business.

If your in house collections efforts are not consistent and effective, you lose not only money, but productivity as well, because you're having to dedicate labor time to "chasing after" these delinquent accounts.

To better recover on these past due accounts, many Alabama businesses turn to Alabama collection agencies.

How Can An Alabama Collection Agency Help Me?

An Alabama debt collection agency can help your business collect its bad debts by:

Mail
Typically, collection agencies make use of a number of letters sent to the debtor, called demand letters. These are often very effective in getting the debtor's attention, especially since they're coming from a neutral third party. They're written to remind them of their obligations, and get them to pay or make payment arrangements to satisfy the debt.

Phone
If, after a series of demand letters don't prove effective, an Alabama collection agency will then make phone calls to the debtor.

Legal Options
Alabama debt collection companies often can take legal action, up to and including filing suit, if both the demand letters or phone calls haven't been successful.

Areas served in Alabama

Alabama collection agencies offer coverage statewide, including these major cities:

• Birmingham
• Montgomery
• Mobile
• Huntsville
• Tuscaloosa
• Hoover
• Dothan
• Decatur
• Auburn
• Gadsden

Choosing An Alabama Commercial Collection Agency

When choosing an Alabama collection agency, here are a few areas to look for:

Debt Collection Techniques

• ask for sample demand letters that they will be sending to your clients. You want to make sure the language is both strong enough to get their attention, but doesn't alienate your customers. You also want to make sure they abide by the federal Fair Debt Collection Practices Act (FDCPA), and other state collections laws.

  The FDCPA forbids abusive, threatening and obscene language when dealing with debtors, and that they be treated with respect.

• Ask how is debtor information forwarded to the collection agency.
• When and how is collected monies sent to your business.
• How can your business monitor the collections activity.

Company History and Reputation
Ask for references of other similar businesses they've worked with; ask how long they've been in business. Many agencies come and go, so make sure you're dealing with an Alabama collection agency that has stability.

When you're ready to hire an Alabama collection agency, let DebtCollectionSteps.com help you. Fill out the quote form below, and we can refer you to an agency that serves your area.

Alabama Collection Laws Overview

• Alabama Collection Laws Interest Rate
  
  Legal: 6%
  Judgment: 12%



• Alabama Collection Laws Statute Of Limitations (Years)
  
  Open account: 3
  Written Contract: 6
  Domestic Judgment: 20
  Foreign Judgment: 20



• Alabama Collection Laws Bad Check Laws (NSF) (Civil Penalty)
  
  Greater of $10 or Actual Bank Charges





• Alabama Collection Laws General Garnishment Exemptions
  
  75% of wages are exempt from garnishment



• Alabama Collection Laws Collection Agency Bond & Licensing Rules
  
  Bond: No
  License: Yes
  Fee:
  $25 - Population under 20,000
  $100 - Population over 20,000
  Exemption for out-of-state collectors: Business License not required for out-of-state agency.

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