AL HB456

Amends Section 6-2-34 of the Code of Alabama 1975 to add a new subsection (10) establishing a six-year statute of limitations for civil actions to recover debt on open-end credit plans, including credit card debt and similar revolving debt.

Includes accrued interest on open-end credit plan debt within the six-year limitation period when interest is provided pursuant to contract between creditor and debtor.

Defines "credit card" as a revolving credit account where the account holder accrues debt and interest on a periodic basis pursuant to contract, with periodic statements rendered to the debtor.

Characterizes the bill as declaratory of existing law intended to clarify the commencement timeline for money recovery actions under the existing subdivision (5) of Section 6-2-34.

Becomes effective immediately upon passage and gubernatorial approval or upon becoming law through other means.