Davis v. Redstone Federal Credit Union

This case involves the question of whether federal credit unions are exempt from the provisions of the Alabama Consumer Credit Act (the Mini-Code, §§ 5-19-1, et seq., Code 1975). Specifically, the issue is whether the Mini-Code’s provision which limits recovery of attorney’s fees to 15% of the unpaid debt will apply to a federal credit union loan. The Alabama Court of Civil Appeals, in Davis v. Redstone Federal Credit Union, 401 So.2d 49 (Ala.Civ.App., 1979), held that the Mini-Code was preempted by the extensive federal regulations which govern federal credit unions. We reverse.

The doctrine…