Open accounts; revise provision relating to.
By defining 'open account' and establishing a framework for handling unpaid accounts, SB2464 is expected to impact civil law regarding debt collection significantly. It introduces provisions that stipulate if a debtor fails to pay their account within thirty days after receiving a written demand for payment, they would be liable for reasonable attorney's fees awarded when a judgment is rendered in favor of the plaintiff. This change aims to streamline the debt recovery process and enhance the enforceability of open accounts in the state.
Senate Bill 2464 seeks to amend Section 11-53-81 of the Mississippi Code of 1972, introducing a clearer definition of the term 'open account.' The bill aims to provide clarity regarding what constitutes an open account, encompassing debts for goods and services provided between individuals or entities, regardless of whether these transactions involve an agreed fixed price, and includes professional services like legal and medical services. One notable aspect is the bill's emphasis on a broad interpretation of 'open account,' allowing for more flexibility in the application of this law.
Noteworthy points of contention around the bill may arise around the provision that allows for courts to consider evidence such as the receipt of written demand by a spouse as a valid form of notification to the debtor. This could lead to discussions regarding privacy and due process, especially in how debt collection practices might intrude into personal life. Additionally, excluding retail sales installment contracts assigned to licensed lenders from the act's applicability introduces complexities in how different types of debt are treated under Mississippi law, which could provoke debate among legislators and stakeholders in the financial sector.