SB68 - Alabama Consumer Lawsuit Lending Act

• Regulates "consumer lawsuit lending" by defining it as providing money or credit to consumers where repayment is conditioned on recovery in a dispute or where the lender's recourse is limited to amounts recovered.

• Establishes a maximum finance charge of $10 per $100 of principal loan amount per year, regardless of loan amount or transaction structure, and prohibits charges based on a percentage of recovery.

• Requires all consumer lawsuit lenders to obtain a license under Section 5-19-22 of the Code of Alabama 1975 without regard to the number of extensions of credit made in the preceding year.

• Creates criminal penalties of up to $500 in fines and/or up to one year imprisonment for willfully charging excess finance charges or operating without required licensure.

• Becomes effective on the first day of the third month following passage, with existing lenders required to obtain licenses by September 30, 2014, at a prorated fee of $125 per location through December 31, 2014.