AL HB117

Amends Section 6-2-34 of the Code of Alabama 1975 to establish 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.

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.

Includes accrued interest on the debt in the six-year limitation period, with interest calculated as provided in the contract between creditor and debtor.

Declares the act is clarifying existing law regarding the commencement of actions for recovery of money under subdivision (5) of Section 6-2-34.

Takes effect immediately upon passage and approval by the Governor or upon otherwise becoming law.