HB34 Summary

• Amends Section 5-19-4 of the Alabama Consumer Credit Act to increase the minimum late charge threshold from $10 to $18 when a scheduled payment is 10 or more days in default.

• Maintains the maximum late charge as the greater of $18 (increased from $10) or 5% of the scheduled payment in default, capped at $100.

• Late charge may only be collected once per scheduled payment, regardless of how long the payment remains in default.

• Becomes effective immediately upon passage and approval by the Governor.