AL HB395

Establishes the "Alabama Consumer Lawsuit Lending Act" to regulate the lending of money or credit to consumers where repayment is conditioned on recovery in a dispute or the lender's recourse is limited to amounts recovered.

Defines a "consumer lawsuit lender" as any person providing money or credit under such agreements and classifies each transaction as a consumer loan regardless of how the transaction is structured.

Caps the maximum finance charge at $9 per $100 of principal loan amount per year, with the finance charge not to be determined as a percentage of dispute recovery.

Requires all consumer lawsuit lenders to obtain a license under Section 5-19-22 of the Alabama Code without regard to the number of prior credit extensions, and subjects them to specified sections of the Alabama consumer lending laws.

Becomes effective on the first day of the third month following passage, with existing lenders required to obtain licenses by September 30, 2016, at a prorated fee of $125 per office for the remainder of 2016.