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AL SB282

Bill

Status

Introduced

2/28/2013

Primary Sponsor

George Keahey

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Origin

Senate

Regular Session 2013

AI Summary

  • Defines "Principal Balance" as the balance due exclusive of interest, service charges, or other loan-related charges.

  • Caps deferred presentment (payday) loan fees at an annual percentage rate (APR) of 36 percent and limits maximum loan amount to $500 across all licensees.

  • Prohibits licensees from extending loans to customers with outstanding transactions of $500 or more, six or more loans in a 12-month period, active extended repayment plans, or military service members and their families.

  • Requires licensees to use a supervisor-designated common database to verify customer loan status and submit transaction data including borrower information, loan amounts, fees, and repayment details.

  • Mandates that the deferred presentment period does not begin until funds are received by the customer and prohibits licensees from using force, violence, or threatening criminal prosecution against customers.

Legislative Description

Deferred presentment services, define principal balance, common database, limits on interest that can be charged, violations, Secs. 5-18A-2, 5-18A-12, 5-18A-13, 5-18A-16 am'd.

Deferred Presentment Services

Last Action

Read for the first time and referred to the Senate committee on Banking and Insurance

2/28/2013

Committee Referrals

Banking and Insurance2/28/2013

Full Bill Text

No bill text available