HB146 Summary

• Amends Alabama's Deferred Presentment Services Act to add the definition of "Principal Balance" as the balance due exclusive of interest, service charges, and other loan-related charges.

• Caps deferred presentment (payday) loans at an annual percentage rate (APR) of 36 percent and limits the maximum aggregate amount advanced to any borrower to $500 from all licensees combined.

• Prohibits licensees from extending loans to customers with outstanding transactions of $500 or more, six or more transactions in 12 months, active extended repayment plans, or military members without Military Lending Act compliance.

• Requires licensees to use a supervisor-designated common database to track outstanding deferred presentment transactions and submit transaction data before entering into each loan, with the supervisor imposing a maximum $1 fee per transaction.

• Renders loan contracts void if entered in violation of the act and makes transactions in violation of fraud or unlicensed internet lending provisions uncollectable and unenforceable, with civil penalties up to $1,000 per transaction.