MONTGOMERY, ALABAMA — Debt collection lawsuits have reached their highest recorded level in Alabama, placing thousands of residents at risk of wage garnishment, frozen bank accounts and other court-ordered penalties.
A Pew Charitable Trusts study found that creditors filed approximately 108,308 collection cases in Alabama during 2025, an increase of 140% compared with 2019. Filings more than doubled from roughly 54,000 in 2023 and represented about 38% of the state’s nearly 290,000 civil cases last year.
The cases primarily involve unpaid credit card and medical debt. Researchers said fewer than 4% of defendants have attorneys, while many people fail to respond because they do not understand court documents, cannot verify who owns the debt or are unaware of available legal protections.
The rise was especially sharp in some majority-Black counties. Greene County experienced a 500% increase in filings between 2010 and 2025, while Sumter County recorded a 463% increase. Majority-white counties also experienced substantial growth.
Debt collection representatives said lawsuits are generally pursued only after consumers fail to respond to repeated outreach. Consumer advocates counter that debt buyers often purchase accounts for pennies on the dollar and pursue cases through a legal process that defendants find difficult to navigate.
Pew recommended clearer notices, stronger documentation requirements and protections preventing collectors from draining essential income from consumers’ bank accounts.
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