HB319 Summary: Alabama Title Pledge Act

• Establishes the Alabama Title Pledge Act to license and regulate title pledge lenders through the State Banking Department's Supervisor of the Bureau of Loans.

• Limits title pledge service charges to a maximum 36 percent annual percentage rate; prohibits additional fees except late charges (maximum $18 or 5% of scheduled payment) and actual repossession costs.

• Requires title pledge lenders to obtain licenses ($600 initial fee, $500 annual renewal), post $50,000 bonds per location, and complete detailed transaction forms with specific borrower disclosures and payment schedules.

• Establishes pledgor protections including no obligation to redeem property, no early payment penalties, rights to redemption within 15 days of repossession, and entitlement to surplus from property sales exceeding outstanding balances.

• Imposes criminal penalties (Class A misdemeanor for unlicensed operation, Class A misdemeanor or Class C felony for record violations) and allows licensee suspension or revocation for violations; exempts banks and credit unions regulated by other authorities.