AL SB253

Increases maximum late charge from $10 to $18 when a scheduled payment is 10 or more days in default under the Alabama Consumer Credit Act or Mini-Code.

Late charge remains limited to the greater of $18 or five percent of the scheduled payment in default, with an overall maximum cap of $100.

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

Change applies only when the late charge is stipulated in the credit contract.

Act becomes effective immediately upon passage and Governor approval.