HB160 - Alabama Consumer Lawsuit Lending Act

• Establishes licensing and regulatory framework for consumer lawsuit lenders who provide money or credit to plaintiffs with repayment conditioned on recovery in civil disputes, alternative dispute resolution, or administrative proceedings.

• Caps finance charges at $10 per $100 of principal loan amount annually, regardless of transaction structure or amount financed, and prohibits charges based on percentage of dispute recovery.

• Requires consumer lawsuit lenders to obtain licenses under Alabama Code Section 5-19-22 without regard to number of prior credit extensions and comply with existing consumer lending regulations.

• Mandates consumer lawsuit lending agreements include a bold-type right of rescission allowing consumers to cancel within five business days of funding by returning the full amount of disbursed funds.

• Authorizes the Superintendent of Banks to promulgate regulations and interpretations for enforcement; requires lenders to obtain licenses by September 30, 2015, with a prorated fee of $125 per office through December 31, 2015.