SB532 Summary

• Amends the Deferred Presentment Services Act to clarify that a deferred presentment transaction is not continuous if at least one day passes between full repayment and a new transaction for the same account.

• Requires licensees to use a common database designated by the supervisor with real-time Internet access to verify that customers do not have outstanding deferred presentment transactions exceeding $500, with providers submitting transaction data before entering into each transaction.

• Modifies the extended repayment option requirement to make it mandatory (changing "may" to "shall") that licensees offer customers four equal monthly installments before commencing civil action to collect on defaulted transactions.

• Establishes that licensees can only charge one insufficient funds fee per transaction after actual presentment to the financial institution, and expands the definition of prohibited bad check fee collection schemes.

• Creates new violations including employment of schemes to defraud borrowers or lenders, and engaging in deferred presentment services in Alabama through Internet, facsimile, telephone, or kiosk without a license; such violations render transactions uncollectable and unenforceable.