Alabama courts impose a 30 percent collection fee on individuals whose payments are more than 90 days late.
Alabama is a low-tax,low-service state that relies on bonds, vice taxes, court fines, and fees to fund basic services and projects. This report presents findings from a multi-method study examining how court fines and fees are assessed, collected, and experienced in Jefferson County, Alabama. Drawing from five years (2018 to 2022) of administrative court data, census data, interviews, and focus groups, the study explores the geographic and demographic distribution of court debt, the drivers of debt growth, and the financial and nonfinancial consequences of court debt for individuals and the court system. The data show that court debt in Jefferson County is substantial, frequently uncollected, and disproportionately concentrated in neighborhoods characterized by high socioeconomic disadvantage. The authors document broader consequences, including near-permanent disenfranchisement for individuals with felony convictions who cannot satisfy court debt and high financial burdens associated with “worthless check” charges. The report concludes with recommendations for legislators and court actors.
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Key Findings:
- Five years after the assessment of fines and fees, 42 percent of individuals made no payments toward their balances, and only 16 percent of indigent individuals paid in full.
- When the 30 percent collection fee was imposed, people were 70 percent more likely to have an unpaid balance than those without it.
- The collection fee was associated with an average $827 increase in unpaid balances, and an average of $262 in payments over the period after the fee was imposed.
- Black sample members, on average, owed $356 more than White sample members.
- Courts more frequently assessed Black sample members with the 30 percent collection fee than White sample members (66 percent compared to 55 percent).
- Nearly all individuals with disenfranchising felony convictions remained unable to restore voting rights due to unpaid debt.
- “Worthless check” cases disproportionately affect Black women and often involve using those checks for basic needs, with total court debt far exceeding the original check amount.
- 85 percent of those checks were written for groceries.
- The court debt associated with worthless check cases was substantially higher–over seven times higher– than the value of the original checks written.
Recommendations:
- Courts should create an online platform that allows people to see how much they owe, for what reason, and consolidate their payment plans.
- Replace revenue generated by court debt with a more equitable funding stream.
- Legislators should overhaul legislation that authorizes the assessment of fines, fees, and costs to reduce excessive assessments.
- Standardize assessments across Alabama and eliminate local fees that fund special projects.
- Mandate ability to pay determinations when financial sanctions are imposed.