HB326 - Alabama Title Loan Act

• Establishes licensure and regulation of title loan lenders by the State Banking Department, with separate licenses required for each office location.

• Sets maximum annual interest rates at 36% on the first $2,000 of principal, 24% on amounts $2,000-$3,000, and 18% on amounts exceeding $3,000.

• Requires written title loan agreements with specific terms including 180-365 day loan periods, substantially equal installment payments, and disclosure of borrower rights regarding early repayment and repossession.

• Prohibits title loans to persons under age 19 and establishes procedures for default including a 30-day grace period before repossession, a 15-day redemption period, and borrower entitlement to surplus proceeds from vehicle sales.

• Creates civil and criminal penalties for violations, including fines up to $5,000, license suspension or revocation, and Class A misdemeanor or Class C felony charges for willful violations or unlicensed lending.