HB462 Summary

• Creates the "Alabama Title Loan Act" requiring State Banking Department licensure for title loan lenders, with separate licenses required for each office location.

• Establishes licensing requirements including $1,200 nonrefundable application fee, $200 investigation fee, fingerprinting, and $100,000 bond per license (maximum $1,000,000 aggregate).

• Caps interest rates at 36 percent annual percentage rate with specific provisions for late fees ($18 or 5% of payment), extensions, and prohibits prepayment penalties and insurance charges.

• Provides borrower protections including 30-day loan terms, 15-day redemption period after repossession, right to surplus proceeds from vehicle sales, and voidability of unlicensed loans with borrower recovery of fees and attorney's costs.

• Specifies violations subject to disciplinary action including fraud, misrepresentation, excessive charges, and unlicensed operation, with penalties ranging from administrative fines up to $5,000 per violation to criminal charges (Class A misdemeanor or Class C felony for certain violations).