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AL SB410

Bill

Status

Introduced

2/26/2014

Primary Sponsor

Arthur Orr

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Origin

Senate

Regular Session 2014

AI Summary

SB410 Summary

  • Allow customers to repay deferred presentment transactions (payday loans) over a six-month period with equal monthly payments instead of the previous shorter timeframe.

  • Prohibit licensees from extending deferred presentment transactions and reduce the extended repayment option from four months to three equal monthly installments.

  • Require licensees to collect a bad check fee for each returned check and use a supervisor-designated database to verify customers do not have outstanding transactions exceeding $500.

  • Mandate licensees to report transaction information to the supervisor annually by December 1, with the supervisor required to publish aggregated utilization data to the public.

  • Effective January 1, 2015.

Legislative Description

Deferred presentment transactions, customer repayment period revised, extensions prohibited, collection of a bad check fee under certain conditions, use of database by licensees required, Secs. 5-18A-2, 5-18A-12, 5-18A-13 am'd.

Deferred Presentment Services

Last Action

Pending third reading on day 22 Favorable from Banking and Insurance with 1 amendment

4/1/2014

Committee Referrals

Banking and Insurance2/26/2014

Full Bill Text

No bill text available