HB400 Summary: Alabama Title Pledge Act

• Establishes licensing and regulatory framework for title pledge lenders in Alabama through the State Banking Department's Supervisor of the Bureau of Loans.

• Caps annual percentage rates at 36 percent for title pledge loans, prohibits excessive fees, and requires clear disclosure of all terms on standardized transaction forms.

• Requires licensees to maintain $50,000 bonds per location (max $250,000 aggregate) and imposes initial license fee of $600 with $500 annual renewal fees.

• Prohibits unlicensed operation (Class A misdemeanor), establishes penalties up to Class C felony for certain violations, and grants supervisor authority to suspend or revoke licenses after notice and hearing.

• Provides consumer protections including 15-day redemption rights after repossession, prohibition on early payment penalties, and requirements for written notice before property seizure.