Short Answer:
No.
Explanation:
The Uniform Certificate of Title and Antitheft Act, Ala. Code §§ 32-8-1 et seq. ("Title Act"), requires a lienholder to release a lien after the debt is satisfied. Ala. Code § 32-8-64. The Title Act does not authorize a lienholder to charge a lien release fee.
The Alabama Consumer Credit Act, Ala. Code §§ 5-19-1 et seq. ("Mini-Code"), authorizes a creditor to contract for a rate on the balance and specified fees. The Attorney General's office has taken the position that a creditor may not charge a fee unless the fee is authorized by the Mini-Code or another Alabama statute. This database takes the position that other fees are not permitted unless expressly authorized by a statute, the Attorney General or the Alabama Banking Department, Bureau of Loans ("Banking Department").
This database takes the position that a person should not charge a fee to perform a task required by law unless the law authorizes a fee.
Last Revision*:
May 11, 2019 Show Redlined Changes
* The Last Revision date is the last time we made a SUBSTANTIVE revision to the answer. The date DOES NOT represent the last time we reviewed the answer. We review our answers on an ongoing basis.