SB67 Summary

• Establishes the "Alabama Consumer Lawsuit Lending Act" to regulate consumer lawsuit lenders who provide money or credit to consumers pending dispute resolution, where repayment is conditioned on recovery or lender recourse is limited to the recovered amount.

• Sets maximum finance charge at $10 per $100 of principal loan amount per year, regardless of loan size or transaction structure, and prohibits charges expressed 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 extensions of credit made in the preceding calendar year.

• Makes consumer lawsuit lenders subject to existing Alabama consumer loan regulations under Sections 5-19-16, 5-19-19, 5-19-23 through 5-19-26, and 5-19-29 of the Alabama Code.

• Authorizes the Superintendent of Banks to promulgate regulations and interpretations for enforcement; becomes effective the first day of the third month following passage, with initial licensees required to obtain licenses by September 30, 2016, at a prorated fee of $125 per office for the period ending December 31, 2016.