SB70 Summary

• Amends Section 5-19-4 of the Alabama Consumer Credit Act to modify late charge limits for consumer credit transactions when a scheduled payment is 10 days or more in default.

• Changes the maximum late charge from the greater of $10 or 5% of the scheduled payment (capped at $100) to instead not exceed the amount authorized in the Alabama Small Loan Act as stipulated in Section 5-18-15.1.

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

• Maintains existing provisions regarding deferral charges, prepayment refunds, refinancing protections, and fees for real property-secured transactions.

• Effective immediately upon passage and approval by the Governor.