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AL HB314

Bill

Status

Passed

5/17/2017

Primary Sponsor

Ken Johnson

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Origin

House of Representatives

Regular Session 2017

AI Summary

HB314 Summary

  • Increases maximum loan amount under Alabama Small Loan Act from $1,000 to $1,500 for licensed lenders.

  • Adjusts interest rates for loans based on lending authority: 3% monthly on principal up to $200 and 2% monthly on principal between $200-$1,500.

  • Establishes minimum loan term of 3 months and maximum term of 18 months (alternative rate structure allows maximum of 18 months).

  • Provides alternative rate structure allowing acquisition charges up to 10% of principal plus installment account handling charges ranging from $12-$26 per month depending on loan amount.

  • Applies to loan contracts entered into after the effective date; does not affect existing contracts.

Legislative Description

Small loans under Ala. Small Loan Act, minimum and maximum amount of loans increased and corresponding interest rates, max term of loans, Secs. 5-18-4, 5-18-10, 5-18-13, 5-18-15 am'd.

Banks and Banking

Last Action

Delivered to Governor at 8:39 p.m. on May 17, 2017.

5/17/2017

Committee Referrals

Banking and Insurance5/4/2017
Financial Services2/23/2017

Full Bill Text

No bill text available